Fiona Le Poidevin of Guernsey Finance looks at the island's
success as a captive insurance domicile and its emergence as a
centre of excellence for insurance linked securities.
The latest figures from the Guernsey Financial Services
Commission (GFSC) show that Guernsey continues to grow its
insurance industry. At the end of December 2013, there were 758
licensed international insurers in Guernsey – a net growth of
21 international insurers over the previous 12 months. Much of this
growth relates to the use of protected cell companies (PCCs),
incorporated cell companies (ICCs) and associated cells within the
increasingly popular concept of insurance linked securities
(ILS).
The reasons for the attractiveness of ILS as a structure and an
alternative asset class for insurers and investors are
two-fold:
