Guernsey’s Insurance Independence

Originally published in Post Europe, 11 February 2011

Guernsey recently made it quite clear it would not be seeking equivalence under Solvency II. Dominic Wheatley, immediate past Chairman of the Guernsey International Insurance Association (GIIA), examines why the authorities there felt the need to make this declaration and what it means for insurers and captives there.

The authorities in Guernsey have announced they have no plans to seek equivalence under Solvency II. The joint announcement was issued by the States of Guernsey Commerce & Employment Department and the Guernsey Financial Services Commission (GFSC) in January. ( See this release). It is straightforward and unambiguous but does nevertheless raise some questions.