Guernsey’s Solvency Regime – It’s Good To Talk

David Riley, head of office at Marsh Management Services Guernsey Limited and chairman of the Guernsey International Insurance Association Regulatory & Technical Committee, discusses the proposed changes to Guernsey's solvency regime.

Guernsey as a domicile offers a full range of captive solutions. It was the innovator of the PCC structure and the more recent ICC structure. The benefits of domiciling in Guernsey are clear; however, as the global captive space develops increasing standards as a result of regulation, changes to Guernsey's regime will become necessary to remain a world leader in this space. Recently the Guernsey Financial Services Commission (GFSC) has sought to make a number of changes to the Guernsey solvency regime, which is a good example of regulatory consultation with the industry. The process started in early 2012 with a GFSC discussion document concerning a move toward risk-based solvency. This recognised the fact that Guernsey has previously