Fiona Le Poidevin outlines how differentiation outside Solvency
II and innovative structures continue to set Guernsey apart from
the global competition.
In December 2013 the European Captive Insurance and Reinsurance
Owners' Association (ECIROA) voiced its concerns at the way
Solvency II had been drawn up. The directive has had its
implementation date pushed back to 2016 but, as it currently
stands, eight out of 10 European captives would fail to qualify for
solvency capital treatment because they carry liabilities
underwritten for disposed entities, according to ECIROA.
As a result, ECIROA has written to the European Commission and
the European Insurance and Occupational Pensions Authority (EIOPA)
to ask them to change the rules. If they do not, then ECIROA
believes many captives will be forced to close or move outside the
EU to escape the onerous capital and reporting requirements
required under Solvency II. This is exactly why Guernsey announced
it was not
