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Guernsey: Law of Offshore

Insurance Law

Insurance companies are regulated by the Financial Services Commission under the Insurance Business (Guernsey) Law 1986, updated by the Insurance Business (Bailiwick of Guernsey) Law, 2002, the Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002, the Insurance Business (Bailiwick of Guernsey) (Amendment) Ordinance, 2008, and the Protected Cell Companies Ordinance 1997.

The minimum capital requirement of a licensed insurance manager or a licensed insurance intermediary is GBP25,000 or 125% of the licensee’s professional indemnity insurance deductible or excess, if higher; a fee of GBP4,785 is payable on registration and GBP4,540 annually thereafter for a 'Pure' insurance manager. Commercial insurance managers pay an annual fee of GBP7,600. These fees are effective as of January 1, 2013.

Annual audits are needed, and there are substantial annual information requirements, including business plans, solvency calculations, reports on claims, banking and investment schedules, and, for life companies, actuarial certification.

In March 2010, it was announced that Heritage Insurance Management in Guernsey had achieved a worldwide first by amalgamating two Protected Cell Companies (PCCs).

The companies, Harlequin Insurance PCC Limited and Friary Court Insurance PCC Limited, are both insurance PCCs with 17 independently owned cells between them.

The companies were used by Heritage and Heath Lambert Insurance Management (Guernsey) Limited (now merged) to provide cell captive insurance facilities to their clients. It was decided that amalgamating the two PCC companies into one would create a more efficient structure which ultimately will save money for the clients involved in the cells.

Speaking about the amalgamation, Martin Le Pelley, Compliance Officer for Heritage, said at the time that: “The amalgamation of two PCCs is not straightforward as each cell represents a separate class of share, which in turn means that all cell shareholders must vote in favour of the amalgamation in order for it to take place. Nevertheless, having achieved this milestone, we consider that the combined company will provide a more secure and efficient platform for our cell captive clients going forward.”

The combined company has retained the name Harlequin Insurance PCC Ltd.

Insurance companies can choose between various bases of taxation, see Offshore Legal and Tax Regimes and Offshore Business Sectors.



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