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Insurance Business (Bailiwick of Guernsey) Law, 2002

Guernsey Financial Services Commission (GFSC) · Guernsey

In force

Status per Guernsey Legal Resources (guernseylegalresources.gg) (as at 2026-07-25)

View on GFSC's website Source document

Current version last checked: 2026-07-12

Summary

This is the principal Guernsey law regulating the carrying on of insurance business in or from within the Bailiwick. It establishes a licensing regime administered by the Guernsey Financial Services Commission, sets ongoing prudential and governance requirements for licensed insurers, and gives the Commission wide supervisory, investigatory and enforcement powers over insurers and related persons.

  • Licensing: No person may carry on, or hold out as carrying on, long term or general insurance business in or from the Bailiwick without an insurance licence from the Commission, subject to limited exemptions.
  • Ongoing requirements for licensed insurers: Licensees must comply with conditions of licence, maintain a general representative, meet capital resources and minimum paid up capital requirements, observe restrictions on payment of dividends, appoint an auditor and (for long term business) an actuary, prepare and have audited annual accounts, and file annual returns and accounts with the Commission.
  • Notifications and approvals: Insurers must notify and, where required, obtain non-objection for holders of approved and vetted supervised roles, changes of supervised role holder, and acquisitions or reductions of significant shareholdings or voting power.
  • Long term business protections: Special rules apply to insurers with long term business, including periodic actuarial investigation, separation of assets and liabilities attributable to long term business, restrictions on transferring those assets, and Royal Court sanction for transfers of long term business.
  • Commission powers: The Commission may issue directions to insurers, make rules and codes of practice, require information and documents, appoint skilled persons, and take enforcement action including licence conditions, revocation and prosecution for offences.
  • Advertising and unlicensed insurers: The law restricts insurance advertisements and imposes disclosure requirements on invitations relating to unlicensed or non-recognised insurers.
  • Policyholder protection: The Commission has power to establish compensation schemes and policyholders are given priority on dissolution or winding up of a licensed insurer.

Breach of key restrictions (such as carrying on unlicensed insurance business, contravening an Ordinance restriction, or failing to notify required changes) is a criminal offence under the Law, with liability extending to directors and unincorporated bodies in certain circumstances.

Key obligations

  • A person must be licensed by the Commission as an insurer before carrying on, or holding out as carrying on, long term or general insurance business in or from the Bailiwick.
  • Licensed insurers must maintain a general representative in the Bailiwick and comply with capital resources and minimum paid up capital requirements.
  • Licensed insurers must appoint an auditor and, for long term business, an actuary, and must prepare, have audited, and file annual accounts and annual returns with the Commission.
  • Insurers with long term business must arrange periodic actuarial investigations and keep assets and liabilities attributable to that business separated, with restrictions on transferring such assets.
  • Transfers of long term business require Royal Court sanction following a prescribed application procedure.
  • Holders of approved and vetted supervised roles, and changes to such role holders, must be notified to and, where applicable, not objected to by the Commission.
  • Acquisitions of significant shareholdings or additional/reduced voting power in a licensed insurer must be notified to the Commission.
  • A person granted a direction under section 1 who experiences a change of fact, circumstance or information must notify the Commission as soon as practicable and in any event within 14 days.
  • A licensed insurer under a pre-existing contractual obligation affected by a business-restriction Ordinance must notify the Commission in writing within 14 days of the Ordinance's commencement.
  • Insurers with domestic business must make audited accounts available to policyholders.

Applies to

licensed insurers, applicants for an insurance licence, insurers carrying on long term business, insurers carrying on domestic business, auditors of insurers, actuaries appointed by insurers with long term business, holders of approved or vetted supervised roles, persons acquiring significant shareholdings or voting power in a licensed insurer, unlicensed or non-recognised insurers (advertising restrictions)

Deadlines

  • within 14 days: Notification to the Commission of a change of fact, circumstance or information relevant to a direction granted under section 1(2B).
  • within 14 days of the date of commencement of a section 1(4) Ordinance: Notification to the Commission by a licensed insurer of a pre-existing contractual obligation to effect a contract that would otherwise be prohibited by the Ordinance.

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Version history

2026-07-12

source file (current)