Guernsey's Captive Industry 'Poised For Growth'
by Jason Gorringe, Lowtax.net, London
03 June, 2015
The use of captives is on the increase and global capital is now flowing into Guernsey-rated reinsurance, according to Aon Risk Solutions.
At Aon's annual Guernsey Captive and Insurance Masterclass in London, Captive Insurance Times highlighted how data from Aon's recent Global Risk Management Survey showed an increase in the use of active captives or protected cell companies, up to 18 percent from 15 percent in 2013.
Peter Mullen, CEO of Aon Captive and Insurance Management, said: "There are a number of reasons for having a captive, however, as risks become more complex and interconnected we see captives being used in much more strategic ways, rather than being driven purely by cost efficiencies."
The event, which was attended by more than 100 executives, also heard that continued growth was expected as the need for alternative risk financing solutions was growing exponentially, according to Aon.
Paul Sykes, Managing Director at Aon Insurance Managers in Guernsey, said: "Guernsey continues to be a destination of choice for captive management, insurance-linked securities and now commercial reinsurance."
"It was identified at last year's Master Class that Guernsey is an attractive destination for global capital. One year on, it is clear from the work we are doing with the rating agencies for clients that capital is being directed towards rated reinsurance for both captives and commercial reinsurance start-ups."
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