Part of the Channel Islands, Guernsey is located in the English Channel between England and France and the capital and business centre is St Peter Port. Guernsey is a self-governing Crown Dependency with its own Parliament, however, whilst part of the British Isles, it is not a member of the European Union.
In 1987, Guernsey was one of the first offshore domiciles to introduce an independent Financial Services Commission ("GFSC") to regulate and supervise entities licensed under the Island's laws.
Guernsey is Europe's premier location for offshore insurance management and ranks within the top four in the world for this service. The majority of clients are located in the UK but there are growing numbers in mainland Europe, USA, Japan and the Pacific rim.
Interested in Setting Up a Captive in Guernsey?
- Call Paul Wakefield +44 (0) 1481 717731
- E-mail Paul Wakefield
More Information
General Information
Government
Guernsey is part of the British Isles but has its own parliament responsible for internal affairs. External affairs are the responsibility of the British government.
Legal
Common law based closely on the English legal system.
Taxation
The following are the current options available until 2008, when it is proposed all insurance companies will become exempt.
Currency Control
Companies incorporated in Guernsey are not subject to any form of currency or monetary control. They may trade and maintain bank accounts in any currency or country they desire and are completely free to remit, repatriate or otherwise transfer funds.
Stamp Duty
Payable against authorised share capital:
Regulatory Environment
All insurance companies in Guernsey are regulated by the Director of Insurance under the Insurance Business (Guernsey) Law 2002 and amendments.
General Representative
Every insurer is required to appoint a resident 'General Representative', a position generally filled by the insurance manager.
Auditors
Every insurer is required to appoint an independent, approved firm of auditors to report on Statutory Financial Statements.
Minimum Paid Up Capital
GBP 100,000
Minimum Solvency Margin
1. General Business
18% of first GBP 5,000,000 of net premium plus 16% of excess above GBP 5,000,000
At least 75% of total assets used in calculating the solvency margin must be approved.
2. Long Term Business
GBP50,000 or 2.5% the value of the long term insurance fund.
At least 25% of total assets used in calculating the solvency margin must be approved.
Wherever possible, the Director of Insurance regulates on a risk basis. Therefore, as well as maintaining the minimum solvency margin, the insurer must ensure there are funds available to meet the total annual aggregate risk retention plus forecasted expenses.
