Saturday, June 15, 2024

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Guernsey makes strong start to 2023 captive activity

The Guernsey Financial Services Commission (GFSC) has received 21 applications during the first six months of the year, eight of which were for captive licences.

The domicile remains a go-to jurisdiction for UK-based corporates, as well as a strong option for international businesses.

Guernsey added 12 new captives in 2022 while three captives surrendered its licence, taking its total number of captives to 201.

The start to 2023 suggests another strong year of new formations of both pure captives and cells.

“We have seen increased interest in captive formations since 2021 and that continues for firms that are having difficulty in placing their insurance programmes or when the cover they seek is not available,” the GFSC told Captive Intelligence.

If a company is looking to set up a single parent captive in Guernsey, the application can be processed by the GFSC in around four weeks from submission of a fully completed application. 

“We have a pre-authorisation scheme for captive cells which means that, within certain parameters, a cell can be formed at short notice by the insurance manager providing the Commission is advised within 14 days thereafter,” the GFSC said.

The GFSC said one of the biggest challenges that Guernsey faces as it aims to continue attracting new captive formations and maintaining its position as the biggest domicile in Europe is attracting and housing sufficient skilled staff.

“This is a matter for government but the Commission contributes to the debate when appropriate.”

As a means of combatting a potential talent shortfall, Guernsey launched a new, updated course in international insurance management in February.