Stephen Durham, Reporter at Captive Insurance Times,
asks Dominic Wheatley, Chief Executive of Guernsey Finance, for his
thoughts about where European captives are with Solvency II, and
how they are adapting to today's financial
environment.
Stephen Durham: What challenges do European
captives currently face in the run-up to Solvency II's
implementation next year?
Dominic Wheatley: Captives domiciled within the
EU will have to comply with Solvency II's blanket approach to
the regulation of (re)insurance business. It is designed to deal
with problems within the commercial market and therefore some of
the requirements are simply disproportionately onerous for
captives.
Guernsey is not in the EU (although it is in Europe
geographically) and as such, is not required to implement Solvency
II. Instead, the Island is updating its own risk-based,
proportionate solvency regime in line with the Insurance Core
Principles (ICPs) of the International Association of
