The Guernsey Financial Services Commission licensed 89 new international insurers during 2013.
This includes ten limited companies, six Protected Cell Companies, 63 PCC cells, two Incorporated Cell Companies and 8 ICC cells.
It means that there were 758 international insurers licensed in the Island at the end of December 2013. This number comprises 242 limited companies, 69 PCCs, 414 PCC cells, 7 ICCs and 26 ICC cells.
It compares to a total of 737 international insurers being licensed by the GFSC at the end of December 2012, which means there has been net growth of 21 entities during the year.
Fiona Le Poidevin, chief executive of Guernsey Finance, said that a significant proportion of the licences issued last year were associated with structures related to Insurance Linked Securities.
“It is pleasing to see that Guernsey remains a popular international insurance centre. These figures build on last year’s very strong performance and together mean that nearly 200 international insurance entities have been licensed in the Island during the last 24 months. The increases continue across the different types of entities, although there is particularly strong growth in PCC and ICC cells and especially in relation to ILS structures.
“Guernsey’s international insurance expertise, our close proximity to both London and Zurich and our access to major global capital markets mean that we are increasingly viewed as a centre of choice for ILS. We are looking to build on this during 2014 through a number of different marketing and promotional activities which will highlight that Guernsey not only has a particularly experienced insurance sector but also a large investment funds community so is able to bring together both sides of the ILS equation.”
The Guernsey office of Bedell acted in an ILS deal that was devised by the legal team on the island, led by Partner Mark Helyar.
Bedell was Guernsey counsel to the issue and the issuer and worked alongside the European Islamic Investment Bank, Rasmala Group and legal firm Morgan, Lewis and Bockius. Aon Guernsey was appointed as the insurance manager and a primary listing is being sought on the Channel Islands Securities Exchange.
Paul Sykes, managing director of Aon Guernsey and chairman of the Guernsey International Insurance Association, said: “Guernsey continues to provide an attractive environment for establishing a wide variety of international insurance entities, including ILS structures, and we see significant opportunities for growth in the management of Sharia compliant insurance products. Of particular importance is our regulatory regime which continues to respond to innovative proposals while also offering proportionality through meeting the insurance core principles of the International Association of Insurance Supervisors.”
