Domiciles can achieve competitive advantage by applying ICP 17
and reducing capital requirements for lowest risk captives, says
Martin Le Pelley, Chairman of the Guernsey International Insurance
Association.
With so much attention being placed on the impact of Solvency II
on EU captive domiciles and those jurisdictions seeking equivalence
with Solvency II, some may have overlooked the fact that the
International Association of Insurance Supervisors updated its
Insurance Core Principles in October 2011.
It is the adherence to the IAIS core principles which the IMF
use to assess the preparedness of jurisdictions in compliance with
international regulations and maintenance of financial stability.
As such, not only are the ICPs more important for comparability of
jurisdictions than Solvency II, but furthermore, they will be
difficult for jurisdictions to "opt out" of without
risking being perceived as behind the curve in terms of risk-based
regulatory best practice.
