Guernsey's development of green and sustainable finance
continues with consideration being given to a introducing a lower
risk weighting for green investments held by life insurers.
The Guernsey Financial Services Commission (GFSC)
has issued a consultation paper on proposed amendments to its
Insurance Business Solvency rules. The consultation follows on from
a Discussion Paper on green insurance issued by the GFSC in
2018.
The amendments would reduce the capital requirements applicable
to green fixed income assets of commercial life insurers and
commercial life reinsurers.
The proposals are limited to life insurers, as general insurers
typically have a shorter investment time horizon and greater
liquidity constraints. The criteria for green assets would follow
those introduced by the Guernsey Green Fund Rules on launch in
2018.
