www.captiveinternational.com GUERNSEY INSURANCE FORUM 13
iStock Photo / PhilEllard
“We are better prepared than many others to
handle the new issues that emerge.”
Dominic Wheatley, Guernsey Finance
Business continuity has been a key
concern among insurers following
the UK’s decision to leave the EU,
and has led some to question how
Guernsey’s future relationship with
parties will look.
“A key issue from our point of
view is that there will no longer be
any EU border between ourselves
and London, our largest market for
financial services,” said Wheatley.
However, Wheatley suggested,
Guernsey’s relationship with
London is “good and strong”, and will
even be enhanced after Brexit.
The Guernsey Financial Services
Commission signed a Memorandum
of Understanding with the Bank of
England, which was a reaffirmation
of the relationship between
the Guernsey regulator and the
Prudential Regulation Authority
PRA is a part of the Bank of
England and responsible for
the prudential regulation and
supervision of banks, insurers and
major investment firms, regulating
some 1,700 financial firms.
Through this agreement, the
parties will be able to share
confidential information about
regulated entities and formally
cooperate on other supervision
The development was welcomed
by Wheatley, who believes this
relationship is important for
financial services and insurance in
the Channel Islands, particularly as
both parties seek to reposition the
trading relationship post-Brexit.
A panel discussion at the event
involving Theo Leonard from
Barclays and Suzy Awford, head
of regulatory and government
affairs at AIG Europe, suggests the
UK could learn from Guernsey’s
unique position as a major captive
insurance centre within Europe but
outside the EU.
Will Thomas-Ferrand, international
practice leader at Marsh Captive
Solutions, was also at the panel.
He argued that the UK’s departure
from the EU is not influencing
redomiciliation among European
captives, and while there are vast
uncertainties around Brexit, it is
not high on the risk management
agenda for them.
Rather than the focus being on
Brexit causing problems in small,
isolated instances where a captive
is trying to write from the EU to the
UK or vice versa and not being able
to achieve that, Thomas-Ferrand
said it raises a bigger questions of
whether the captive is financing the
risks that its parent corporations is
exposed to in the right way.