Guernsey can offer Chinese companies looking for insurance solutions “something no other jurisdiction can" to help them "achieve their goals”, according to Kate Clouston, Guernsey Finance deputy chief executive.
Clouston was speaking at Guernsey Finance’s Shanghai Masterclass, an insurance-focused event held on 26 September alongside a number of members of the Guernsey and Chinese financial services industries.
The event advised attendees on how all types of ILS structures, including catastrophe bonds, sidecars, collateralised reinsurance, and rated reinsurance, can be managed from Guernsey.
Additionally, a panel discussion explained how to set up captive structures, discussed the benefits of having a well-developed finance centre, reasons to securitise catastrophe bond risk, and the development of the relationship between captives and ILS.
There were also discussions on investment in ILS, economies of scale and therefore a better yield for investors, Guernsey’s specific rules on special purpose insurance, and the island’s attraction for countries such as Japan, and large institutional investors and fund managers who only deal with rated entities.
Clouston suggested that Guernsey had taken significant steps in China and was taking advantage of opportunities in the captive and insurance-linked securities (ILS) markets.
She commented: “There is a growing interest from companies in China looking for insurance solutions, whether that be risk management or the internationalisation of their business.”
“Guernsey is in a unique position to offer them something no other jurisdiction can to achieve their goals.”
“Having Guernsey practitioners present with experience of working in China was a real benefit as delegates could hear direct from the experts.”
One of the speakers, ARM managing director Charles Scott, said the masterclass covered all the important topics related to starting Chinese owned captives and stated that he was impressed by the turnout.
He said: “Particularly pleasing was the turnout of more than 100 insurance professionals, many of whom I have already met on other business trips.”
“It shows there is a real appetite both to learn more about captive operations and their promotion within China.”
“This type of seminar helps cement Guernsey as the top domicile for the emerging Chinese captive market.”
Another of the speakers, Mark Elliott, Aon director of ILS, added: “We are looking forward to building on the great network that Guernsey Finance has developed in recent years in China, along with supporting our Aon COFCO colleagues in China, to help promote captive, ILS and reinsurance growth.”