Error encountered in: F:\Website\www.dixcart.com\public_html\inc\templates\richheader.inc.asp
Provider - Unspecified error
Incorporation and Registration
Before a decision is made to form a captive insurance company it is vital that a feasibility study is undertaken in conjunction with a Guernsey captive insurance manager. This study will:
- Provide management of the parent organisation with a summary of the reasons why a captive is feasible and recommended.
- Outline budgets and projections for the anticipated performance of the captive.
- Detail a sound basis for the business plan, which must be submitted to the Guernsey Financial Services Commission.
- Establish the viability of a captive scheme and the form that it should take.
Dixcart can organise for this work to be carried out by experienced individuals from Managed Risk Insurance PCC Limited (MRI), who can advise on the suitability of a captive for any particular situation.
Incorporation and Registration of a Captive Insurance Company in Guernsey
MRI is able to assist with the incorporation and registration of a captive. MRI works closely with experienced captive insurance managers in Guernsey, who provide the insurance knowledge required to run the captive, whilst Dixcart assists with the statutory, accounting and taxation matters.
Incorporation and registration of a captive insurance company in Guernsey normally takes two to four weeks. A detailed business plan and three year financial projections are required. These can be drawn up by Dixcart and our insurance managers, from details supplied by the client.
Details on the beneficial owners of the captive insurance company and its parent must be supplied, and the normal due diligence documentation obtained.
The company will need at least one local director. We would normally recommend that the majority of the directors be located in the Channel Islands, and we are able to provide suitably qualified individuals to act as directors for captive insurance companies in Guernsey.
The minimum share capital is £100,000 (€150,000) and the minimum solvency is 18% of net earned premium. Therefore if the net earned premium for a particular year was €1,000,000 the minimum solvency would be €180,000.
This is the minimum theoretical solvency, but, in practice, it is unusual to have a solvency level of less than 20% of net premiums. Depending upon the type of risk being covered, solvency levels may well need to be much higher. The insurance specialists working on the captive will advise on this issue. It will then be reviewed by the Financial Services Commission, which takes great interest in the solvency levels for a captive.
Assets must be approved assets. Reinsurance and assets held by individuals connected to the captive insurance company are generally not approved.