FAQs

Details of how to apply for a licence to write insurance business are set out in the Applications page of this website.

Details of how to apply for a licence to conduct business as an insurance manager or insurance intermediary are set out in the Applications page of this website.​

Please refer to the Regulated Entities page of this website for ;a list of licensed insurers, licensed insurance managers and licensed insurance intermediaries. Alternatively, if you know the name of the company you are looking for, you can use the search facility at the top of this page.​

The Commission is the regulatory body for the finance sector in the Bailiwick of Guernsey and is therefore not in a position to recommend the services of a particular licensee. Please refer to the Regulated Entities page of this website for a list of insurance managers and insurance intermediaries licensed to conduct business in or from within the Bailiwick of Guernsey

A Guidance Note for Licensed Insurers on Outsourcing can be found here.

Please refer to the ​Recognised Insurers, including Authorised Motor Insurers page of this website for further information.

Please refer to the Minimum Capital Requirement for Licensed Insurance Managers and Licensed Insurance Intermediaries for further details.​

Certain forms of insurance business are regulated under the provisions of The Insurance Business (Bailiwick of Guernsey) Law, 2002, as amended The Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002, as amended Whilst Commission staff will be happy to provide general explanations of what activities the laws cover, they cannot provide legal advice in respect of specific circumstances. If you are in any doubt as to the position, you should seek advice from a lawyer qualified in Guernsey law.

This is the reference number shown against the licensee name on the Commission’s list of licensees. Each PCC cell also has its own unique reference number and the Commission wrote to all PCC managers with a list of relevant reference numbers. Please note this is not the same as the Guernsey Registry reference nor is it necessarily the same as the number on the licence certificate as many older certificates were issued prior to the Commission’s current numbering system.

You must submit all parts of the workbook, including the validation log, as part of the annual return.

For each PCC you must complete a separate solvency workbook for the Core and each individual cell. You must then complete the PCC Summary spreadsheet which works out the solvency for the overall entity.

Life insurers and domestic general insurers are required to produce an ORSA if they meet the premium income or technical provisions limits set out in rule 8.2.

The Commission expects the Board of every firm to make its own assessment of its solvency requirements. The Board may conclude that the PCR represents a sufficient assessment of its solvency requirements but must record this decision and the reasons for reaching that conclusion.

The treatment of loans is now catered for in the Rules, and dealt with automatically in the spreadsheet, with a capital charge being applied depending upon the credit rating of the loan counterparty. You do not need to notify the Commission nor seek approval to make a loan.

The category 6 treatment for solvency purposes must be agreed in writing by the Commission. It is intended for fully funded entities primarily those which are fully collateralised, such as ILS cells. Merely being 100% reinsured does not qualify for category 6 because there is still the default risk in relation to the reinsurance programme to be taken into account. Similarly, having the current policy year aggregate limits fully funded by capital does not qualify for category 6, since we need to take prior policy years into account as well. Overuse of the category 6 classification will undermine the solvency framework and we would therefore encourage Managers to consider carefully whether a category 6 rating is justified.

Solvency requirements, including the preparation of an OSCA, do not apply to branch operations since the Commission is not the prudential regulator. However, the Commission may specify that certain funds must be retained in Guernsey and may also apply the standard condition relating to policyholder protection.

If the PCC Core is writing insurance business then it will fall into the category applicable for the business being written. If the Core is not writing business it should be classed in accordance with whichever of its cells attracts the highest confidence level (e.g a PCC with both life and general cells will be classed as category 1 or 2 whilst a PCC with only category 5 insurers would be classed as category 5.)

Letters of credit can be provided by others for the benefit of the insurer (inwards LOC) or provided by the insurer for the benefit of others (outwards LOC). Inwards letters of credit, for example those provided by a parent company, may be included in the basis adjustments of the balance sheet assets according to whether they are Type 1 or Type 2 letters of credit as defined in Schedule 3 of the Rules (see also guidance on the spreadsheet). Both types are eligible to meet PCR but only Type 1 letters of credit are eligible to meet the MCR. Outwards letters of credit should be included within the basis adjustments column for off-balance sheet liabilities to the extent that they may influence future profitability and solvency. However, outwards LOCs issued to fronting insurers that can only be drawn upon to meet relevant claims which are already reserved on the balance sheet (and therefore already accounted for under the PCR) need not be included since any drawdown on that LOC should reduce the technical reserves on the balance sheet and therefore should not impact on future profitability and solvency. Any deposit held with the bank as collateral for the LOC would be subject to interest rate risk and spread risk. There may be situations were a LOC is provided to a fronting company by the Parent. This is an off balance sheet asset however it would not meet the rules for a Type 1 letter of credit and can therefore only contribute to the PCR and not the MCR.

The parent company rating may be applied to unrated Guernsey banks as per Schedule 8 and Schedule 9 to the Rules.

Fixed deposits may be treated as cash or as deposits depending upon the term of the deposit. Deposits of less than three months or those which can be broken without significant penalty may be treated as Cash and Cash Equivalents. Other deposits should be included as Deposits.

Money Market funds should be treated as Investment funds.

You should choose the class of business which is most appropriate for the business being written per the descriptions in Schedule 2 of the Rules. Only choose ‘Miscellaneous’ if there is nothing which better describes the business being written. The non-proportional classes of business attract a higher capital charge and are intended to be used for reinsurance business where the insurer is covering layers of risk attaching at higher levels. However, if an insurer is reinsuring a fronting insurer for what would otherwise be the primary layer of risk then there is no need to select the non-proportional class.

This reflects the potential default of a reinsurer in respect of the unexpired proportion of the policy year. The default risk in respect of the reinsurers’ share of claim reserves only reflects the potential default on the expired portion of the risk.

Given that uncalled share capital is included as an asset for PCR purposes it is necessary to reflect the potential default risk of the shareholder counterparty.

Parental guarantees may be included as other off balance sheet assets and related default risk charge must be applied.

Regulatory adjustments must be agreed in writing by the Commission. If you wish to apply for a regulatory adjustment please contact the Commission stating why the adjustment is required and why you believe it is justified, together with supporting evidence. You should also state for how long the adjustment will be required and how the company will otherwise restore its solvency margin. It is also helpful to attach the latest regulatory solvency assessment, latest management accounts and an up to date business plan. Regulatory adjustments will not be considered if a company is meeting its MCR and PCR.

The new amendments came into effect on 13 February 2024, though compliance with many of them is subject to transition periods outlined in the consultation feedback paper.

Retail general insurers must include this information in annual returns submitted from 1 January 2025 onwards.

From 1 January 2025.

From 1 January 2025.

In instances where the firm does not have its own website, public disclosure requirements could be satisfied by utilising the Group’s website (if applicable) and/or the Insurance Manager’s website.

No, the Commission does not intend to offer an alternative platform for publication.

A Licensee may make a request for derogation from making public disclosures under Section 4.2(2) of the Insurance Business Rules and Guidance, 2021. This request should be submitted using Form 219 on the Online Portal. In this request, a Licensee must provide clear and detailed rationale as to why the Firm requires a derogation from making public disclosures, and must specify which information the licensee is seeking to withhold.

This requirement came into effect on 13 February 2024, and therefore applies to the current calendar year (2024).

No, so long as each director is physically present in the Bailiwick for at least one meeting each year the requirement will be satisfied.

As discussed in the consultation feedback paper, firms will be given twelve months’ grace to appoint a second Independent Non-Executive Director to the Board. Since the feedback paper was published in February 2024, the Commission expects all retail general insurers to comply with this requirement by February 2025.

The Commission expects that Boards should already consider each location on individual merit. The revised rule came into effect on 13 February 2024, and we require such consideration to be in place and properly evidenced within 12 months.

From 1 January 2025; this requirement could be complied with through direct Board reporting (with reports issued on at least a half-yearly basis), or through a complaints committee which itself reports to the Board at least twice per year. Complaints can be considered either individually or in aggregate. 

These requirements come into effect from 1 January 2025.

The basic information comprises the following:

1. Postal address of insurer’s registered office or branch, whichever is appropriate;
2. E-mail or telephone number for the insurer (not a service company or any related company such as a broker);
3. Postal address and e-mail address or telephone number for complaints against the insurer;
4. The existence of the Channel Islands Financial Ombudsman and details of its website;
5. Whether the insurer and producer (i.e., broker, intermediary or other similar party) share a common controller (as defined by the Insurance Business (Bailiwick of Guernsey) Law, 2002)

This means filings submitted from 1 January 2025 onwards.

Audited financial statements and other information as required by Schedule 1.

The six-month period commenced on 13 February 2024.

There is no change to the capital requirement for the core, provided that it does not itself underwrite risk.