Guernsey and the Development of Global and European Insurance Capital Standards - Feedback Paper (2018-03-22)

Summary

This is a feedback paper published by the Guernsey Financial Services Commission summarising responses to its September 2017 Discussion Paper on whether Guernsey should pursue Solvency II (SII) equivalence or align with the emerging global Insurance Capital Standard (ICS). It sets out the Commission's conclusions on the future direction of Guernsey's insurance solvency framework rather than imposing new rules.

• Consultation outcome: Twelve responses were received, mainly from insurance managers, insurers and the Guernsey International Insurance Association (GIIA), with no consensus on whether to pursue SII equivalence.
• Commission decision: The Commission concludes that SII equivalence is not practically available to Guernsey in the near term and that the Bailiwick should not proceed with an equivalence application at this time.
• ICS approach: The Commission will continue to monitor the development of the International Association of Insurance Supervisors' Insurance Capital Standard (ICS), which remains some way from implementation and targets internationally active insurance groups rather than individual legal entities.
• Ongoing focus: Guernsey will continue to demonstrate adherence to the IAIS Insurance Core Principles (ICPs) and seek recognition of equivalence in regulatory standards from other supervisors, while keeping the reinsurance confidence level and broader solvency regime under longer-term review.

The paper is informational and reflects a policy conclusion rather than creating new binding requirements; it references a separate, concurrent consultation on measures to further align Guernsey with international standards.

Applies to

insurance managers, licensed insurers, reinsurers, captive insurers, kidnap and ransom insurers