Green Insurance in Guernsey - Discussion Paper (November 2018)

Summary

This is a discussion paper issued by the Guernsey Financial Services Commission exploring how the Bailiwick might become a supportive jurisdiction for green insurance. It covers both possible regulatory changes the Commission could make and wider private sector opportunities for insurers, funds and reinsurers. The consultation closed on 29 March 2019 and the paper itself imposes no binding rules, instead posing questions for feedback.

• Regulatory options considered: Whether the Commission should apply lower capital or risk weightings to green investments held by life insurers, and how green assets might be defined and valued.
• Regulatory barriers: Whether the Commission should highlight and seek removal of barriers to catastrophic reinsurance written out of Guernsey, such as mandatory collateral posting.
• Private sector opportunities: Potential for investment-linked life insurers, insurance-linked securities (ILS), global climate-related general insurance, and green Takaful products to be developed in or branded from Guernsey.
• Consultation questions: The paper lists eleven open questions on green insurance definition, risk weighting methodology, valuation, branding (including a possible green logo), and market gaps, inviting industry and public feedback.

As a discussion paper rather than a rule or guidance document, it creates no direct compliance obligations for regulated entities. It is primarily informational, intended to gather industry views before the Commission decides on any future regulatory action.

Applies to

insurance regulators, insurance professionals, life insurers, general insurers, reinsurers, insurance-linked securities (ILS) providers, Takaful providers

Deadlines

• 29 March 2019: Closing date for responses to the discussion paper