Originally published in Strategic Risk, Captive
Management, A guide to European captive domiciles and company
strategies, March 2009
Updating solvency frameworks has become essential for
captive domiciles in the light of Solvency II. Richard Walker,
Director of Policy and International Affairs at the Guernsey
Financial Services Commission (GFSC), describes Guernsey's
approach.
Failures and near-failures in the global insurance market during
2008 have raised questions about international regulatory standards
and in Europe have placed greater focus on the proposed Solvency II
regime. As a result, Guernsey has updated its solvency
framework.
Last year the Guernsey Financial Services Commission (GFSC)
augmented the existing risk based approach to supervision with the
introduction of the 'own solvency capital assessment'
(OSCA). This requires licensed insurers to justify their view of an
appropriate solvency margin requirement, subject to an absolute
minimum level
