Consultation Paper
Guernsey and the Development of Global and European Insurance Capital Standards - Discussion Paper (2017-09-08)
Issued 2017-09-08View on GFSC's website Source document
Summary
This is a discussion paper, not a rule, in which the Guernsey Financial Services Commission sets out the background to two evolving international insurance capital regimes -- the IAIS Insurance Capital Standard (ICS) and the EU's Solvency II equivalence framework -- and asks the Guernsey insurance industry for views on how Guernsey's own solvency framework should develop in response. It invites written comments by 20 October 2017 and imposes no binding requirements itself.
- ICS background: Explains the IAIS's developing group-wide Insurance Capital Standard for Internationally Active Insurance Groups, expected to take effect in the early 2020s, and its possible relevance to Guernsey.
- Solvency II equivalence: Explains the EU Solvency II regime's three pillars and the reinsurance, solvency calculation and group supervision equivalence tests (Articles 172, 227 and 260), noting only Bermuda and Switzerland currently hold full equivalence.
- Guernsey's options: Discusses the potential costs, benefits and industry implications for Guernsey of seeking Solvency II equivalence, pursuing bespoke equivalence, or maintaining its current risk-based supervisory regime.
- Consultation request: Invites industry and other stakeholders to submit comments to inform the Commission's future decision on Guernsey's insurance solvency framework.
No new rules, fees or reporting obligations are imposed by this paper; it is intended purely to inform debate and gather feedback ahead of any future policy decision.
Key obligations
- Interested parties wishing to respond should submit comments to the Commission (Lynn Harris, Banking and Insurance Policy and Supervision Division) by 20 October 2017.
Applies to
insurers, reinsurers, insurance managers, Guernsey international insurance industry participants
Deadlines
- 20 October 2017: Deadline for industry and other stakeholders to submit comments on the discussion paper to the Commission.