Insurance Industry Fee Reduction for 2027

The Commission can announce that it should be able to discount insurance industry fees for 2027 by 15-20%[1].

Today, the Commission issued a public statement detailing the action we have taken to fine an insurance licensee a total of £1.96mn.  This is the largest fine levied since the States of Deliberation changed the Commission’s fining powers in 2017 in response to a MONEYVAL recommendation.   The fine takes into account the relevant factors laid down within the Financial Services Business (Enforcement Powers) (Bailiwick of Guernsey) Law, 2020.   Further details about the reasons for the fine are set out in the separate public statement about the matter which the Commission has issued.

The Commission has calculated the costs associated with the case at approximately 60% of the fine income received.   With regard to the approximately 40% of the fine income, which is in excess of the Commission’s enforcement costs for this case, Section 39(8) of the Enforcement Powers Law lays down that:

“Any sums which the Commission receives in any calendar year in respect of penalties imposed under this section on persons who are licensees, former licensees or relevant officers for the purposes of a particular supervisory Law shall be taken into account by the Commission in determining the fees payable to it under the provisions of section 129 or of that Law in the following calendar year or, if that is not reasonably practicable, in the subsequent calendar year.”

As the licensee is both an Insurer and an Insurance Manager licensed under two supervisory laws, the Insurance Business (Bailiwick of Guernsey) Law, 2002 and the Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002, the Commission plans to take this additional income into consideration when levying the annual fees for the insurance sector for 2027.  Specifically, we expect that all firms within the insurance sector will receive a discount of between 15-20% on their 2027 annual fees[2]. 

Further to this, a 15% discount will also be applied to the pro-rata annual fee for any new insurance licensee authorised after 15^th March 2026.  A full application fee will be required with any new application, but a discount to the pro-rated annual fee otherwise due on licensing should help reduce initial costs for a new insurance entity established during 2026.

Further details on the findings in this particular case can be found on our website.