Among the reasons for Guernsey's continuing popularity as a location for captives is that the application process is uncomplicated and initial approval can be obtained speedily, if necessary. In addition, the costs of setting up are reasonable - typically about £2,650 ($4,240) including an application fee of £1,650 ($2,640).
Applicants are required to give full details of ownership and submit a business plan disclosing classes and sources of business, including insurance and reinsurance programmes. Each captive must have a minimum share capital of £100,000 ($160,000) and at least five directors including two Guernsey residents.
The Director of Insurance requires that minimum margins of solvency are maintained viz. 18% of the first £5 million ($8m) of net premium income in respect of general business; 16% of the excess above £5m. In addition, at least 75% of assets must comply with the Commission's list of approved assets. However, while minimum solvency requirements must be
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