Beijing Airport Captive Management Consulting (BACM) and Guernsey-based insurance manager Alternative Risk Management (ARM) have partnered up on captive insurance project for Chinese businesses.
As part of the joint venture, ARM will work alongside BACM to create a series of captive structures and the provision of captive management services for Chinese businesses.
Currently, BACM is the only captive insurance consulting group in China and is backed by the Beijing Airport Economic Core Zone (BAECZ), a key hub for China’s business, industrial and creative sectors.
In March, Guernsey Finance signed a memorandum of understanding with the BAECZ on behalf of Guernsey’s finance sector.
According to Charles Scott, managing director of ARM, captives are going to be at the forefront of innovation in China’s insurance market.
Scott said: “Chinese companies with international operations and those looking at expanding overseas are considering ways to use captive vehicles for their risk management needs rather than having to insure through the commercial market.”
He added: “It is therefore an opportune time to have established a key partnership on the ground in Beijing. The fact that Guernsey Finance signed an memorandum of understanding with the BAECZ in March really facilitated our own agreement.”
Last week, Guernsey Finance announced the establishment of Brilliant Reinsurance, the island’s first Chinese insurance company.
Managed and established by ARM, the insurance company will focus on business being retroceded from the Lloyd’s of London market.