Recognised Insurers, Including Authorised Motor Insurers

Under Section 17 of The Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002, as amended, a licensed insurance intermediary (or licensed insurance manager if applicable) “shall not arrange or attempt to arrange a contract of insurance between a client who is a member of the public (in the Bailiwick or elsewhere) and any person other than a recognised insurer.”

The term "recognised insurer" is defined in Schedule 3 of The Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002, as amended as:  

1. Any person who is licensed as an insurer under The Insurance Business (Bailiwick of Guernsey) Law, 2002  in respect of the description of insurance business concerned;

2. Any person who is entitled to carry on the description of insurance business concerned in or from within the Bailiwick without being licensed as an insurer under The Insurance Business (Bailiwick of Guernsey) Law, 2002 by virtue of section 5 of that Law;

3. Any other insurer for the time being included (specifically or by description) in a list of recognised insurers maintained and published by the Commission. 

With regard to (1) above, the insurer’s home jurisdiction is Guernsey and therefore these entities are licensed and supervised by the Commission itself.  With regard to (2) above, these entities are not licensed insurers but are able to carry on certain types of insurance business as described in Section 5 of the Law. Point (3) above relates to overseas insurers who licensed insurance intermediaries may use to underwrite Bailiwick of Guernsey risks but who do not otherwise carry on business as an insurer in the Bailiwick and are therefore not licensed by the Commission.

In carrying out its functions the Commission may have regard to the protection of the public interest, including the protection of the public against financial loss due to dishonesty, incompetence or malpractice by persons carrying on finance business.  Restricting insurance intermediaries to using recognised insurers allows the Commission to make sure that the public interest is protected by ensuring insurance intermediaries only place business with appropriate insurers.  As the insurers on the list are not licensed by the Commission, it is not responsible for their supervision and relies on the home supervisory authority.

• Whether the home supervisory regime provides adequate protection to policyholders (including policyholders in the Bailiwick)

• Whether the home jurisdiction has a policyholder protection scheme (which includes protection for policyholders in the Bailiwick)

• Assessments of the home supervisory regime by international bodies, for example, the International Monetary Fund 

Specific authorisation is required for any recognised insurer wishing to provide third party motor insurance to Bailiwick of Guernsey residents under The Road Traffic (Compulsory Third-Party Insurance) (Guernsey) Laws, 1936 to 1983 and The Road Traffic (Compulsory Third-Party Insurance) (Alderney) Law, 1950, as amended.  Any such insurers must submit a Motor Insurance Application Form to the Commission. Applicants must be members of the Motor Insurers’ Bureau in the UK (“the MIB”) and are required to provide an address in the Bailiwick of Guernsey for the service of documents. All Bailiwick of Guernsey residents insuring motor vehicles for use in the Bailiwick are required to hold motor insurance underwritten by an Authorised Motor Insurer and to display evidence of this on their motor vehicles in the form of a Windscreen Insurance Disc (“WID”).