A Diverse Business - Guernsey's Insurance Sector

Guernsey's position as Europe's leading captive insurance domicile has made the jurisdiction renowned for insurance activity - a large proportion of which provides general insurance cover to UK parents, many of them listed companies. Indeed, approximately 40% of the leading companies on the London Stock Exchange have captives in Guernsey which are estimated to generate annual cost savings of £100 million.

However, Guernsey is also home to a number of insurers and reinsurers underwriting third party risks including life insurance/assurance as well as more exotic risks such as kidnap and ransom and "after the event" insurance.

Introduction

Guernsey's long-established protected cell company ("PCC") as well as its younger offspring, the incorporated cell company ("ICC") are frequently used as incubators for small captive businesses and as special purpose vehicles for insurance linked securities and transformer structures which convert financial risk into