Guernsey To See Growth In Captive Numbers, Says Aon

Guernsey's decision not to seek equivalence with Solvency II will act as a differentiator that encourages increasing numbers of captives to domicile in the Island, according to Aon.

The firm said that the number of captives domiciled in Guernsey – already Europe's leading captive insurance domicile – is expected to increase significantly as the implications of compliance with Solvency II become better understood.

It suggests that while the capital requirements of Solvency II may be appropriate for commercial insurers dealing with the general public, many captive managers and owners believe the International Association of Insurance Supervisors' (IAIS) international regulatory standards will be sufficient for most traditional captives.