Insurance Industry Overview

Guernsey has a well established insurance sector of nearly 200 insurance companies comprising life, general reinsurance and "captives" (captives are dedicated insurance subsidiaries of non-insurance parents, formed to insure the parents risks.) The principal reasons for establishing an offshore insurance company include the potential for:

• cost reduction
  
• risk retention, risk management and loss of control
  
• stabilisation of earnings
  
• greater availability of insurance cover
  
• improved management of group funds
  
• flexibility of regulation (compared with the equivalent onshore requirements)
  
• tax efficiency and deferral, and development of a profit centre.

KPMG in Guernsey provides services to a large number of life assurance and captive insurance companies; these services include advice in relation to the establishment of a new operation, compliance assistance, and annual audit.