The Guernsey Financial Services Commission (GFSC) has reported that “although 2009 began a little quietly, applications for insurance licenses have shown a marked increase since April.”
Figures from the GFSC show that during the first five months of the year it received 14 license applications, six of which have been for pure captives. This is significantly up from the nine applications made during the first five months in 2008, although comparable with those for the same period in 2006 and 2007.
“This is extremely positive news for Guernsey’s insurance industry,” noted Peter Niven, Chief Executive of Guernsey Finance – the promotional agency for the Island’s finance industry.
“Undoubtedly conditions in the commercial markets, such as increasing premium rates and the threat of a further hardening in the future, are stimulating interest in alternatives, such as captives. Nevertheless you still have to be ready to capitalize on these developments because there are a growing number of competitors who are looking to win this business.”
The GFSC also revealed that “expressions of interest about applications to be made in the next few months appear to indicate that the recent improvement is set to continue.”
Richard Walker, Director of Policy and International Affairs at the GFSC, added: “While Guernsey remains Europe’s leading captive jurisdiction, and captives continue to be a major part of the new business in our insurance market, a broader range of insurance vehicles also continue to be formed here.”
Source: Guernsey Financial Services Commission – http://www.gfsc.gg