Heritage backs Guernsey SII decision

Guernsey-based captive manager Heritage Insurance Management has come out in support of Guernsey's decision not to seek Solvency II equivalence.

On Tuesday the Guernsey Financial Services Commmission (GFSC) and the States of Guernsey Commerce and Employment Department (C&E) isued a joint position statement declaring that the island would not be seeking equivalence under the European Commission's Solvency II capital regime, due to come into force at the beginning of 2013.

Heritage said the Guernsey International Insurance Association has been working with the GFSC and C&E for some time to reach this position, which "reflects the commercial interests of the vast majority of Guernsey-based insurers and reinsurers."

"Heritage Insurance Management Limited is an active member of the Guernsey International Insurance Association, and welcomes this statement, which we believe to be in the interests of our clients in Guernsey," a statement from heritage read. "Guernsey has very few companies which would benefit from Solvency II equivalence (mainly commercial reinsurers of EU risks and insurance groups with EU subsidiaries), and as such the cost of implementing a Solvency II equivalent regime would be very costly with very little, if any, benefit for the Guernsey insurance market."