In accordance with section 33 of The Insurance Business (Bailiwick of Guernsey) Law, 2002, as amended (“the Law”), all licensed insurers are required to prepare an annual return in such form as the Commission requires. The detailed requirements for annual returns are contained in The Insurance Business (Annual Return) Regulations, 2008, which all licensed insurers should familiarise themselves with.
Please see below forms to be submitted alongside the licensed insurers' annual returns:
- For life insurers: Actuary’s Declaration to Accompany the Company's Annual Return (Life)
- For locally incorporated insurers: Declaration by the General Representative (Locally Incorporated Insurers)
Own Risk and Solvency Assessments
The Insurance Division has developed a risk-based approach to assessing the solvency of its licensed insurers in line with developing international standards. Whilst the minimum solvency requirements set out in Schedule 2 of the Law still apply, each licensed insurer is also required to undertake an Own Risk and Solvency Assessment (“ORSA”) at least annually in order to determine its Own Solvency Capital Assessment (“OSCA”). The OSCA is required to be submitted with the annual return although the period covered by the OSCA does not have to mirror the period covered by the annual accounts. Please refer to the Guidance Note on Licensed Insurers’ Own Risk and Solvency Assessment for further information.
Deposit of Annual Returns with the Commission
In accordance with section 37 of the Law, all licensed insurers are required to deposit the annual return with the Commission within a period of four months beginning on the close of the financial year to which the accounts relate.
Penalties for Late Filing of Annual Returns
Under The Financial Services Commission (Administrative Financial Penalties) (Bailiwick of Guernsey) Regulations, 2010, an administrative financial penalty will be payable in respect of any annual return which is not filed within the four month period noted above.