St Peter Port
14 March 2017
Reporter: Mark Dugdale

China and Guernsey regulators sign insurance MoU


China and Guernsey’s insurance regulators have signed a memorandum of understanding to make it easier to do business in both jurisdictions.

The agreement between the Guernsey Financial Services Commission (GFSC) and the China Insurance Regulatory Commission (CIRC) is the third insurance deal to be struck between Guernsey and China in the last nine months.

It will enable a flow of information between the GFSC and CIRC to ensure compliance with the relevant laws in each jurisdiction, thereby promoting the integrity, efficiency and financial soundness of those doing business between the two places.

It also includes guidelines for cooperation, including both supervisory bodies having a specific point of contact for communication between the organisations, the types and timing of requests for information, and the respect for a public interest test.

CIRC vice chairman Wenhui Chen said the agreement “shows the strong relationship built up by an important jurisdiction from developed countries and another from the emerging markets”.

Chen added: “I hope the memorandum of understanding will strengthen the relationship between China and Guernsey especially for the insurance industry and we look forward to cooperation after the signing.”

Guernsey Finance chief executive Dominic Wheatley added: “The signing has broader, positive implications for the island’s finance sector as it will also provide Chinese insurance companies with an approved conduit for investing into Guernsey funds, once they have obtained a quota from the State Administration of Foreign Exchange.”

Last year, Guernsey representatives signed agreements with both the China Captive Alliance and the Kashgar government to promote captive insurance in the region.

The agreements, signed in June 2016, laid out plans to cooperate on captive insurance market development and on financial innovation, to promote the viability of the Chinese captive market, and to cooperate on communication between China and the international captive industry.

More regulation news
The latest news from Captive Insurance Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Disappointing outcome for micro captives in Avrahami
22 August 2017 | Washington DC | Reporter: Becky Butcher
The US Tax Court has backed the Internal Revenue Service’s decision to deny Benyamin and Orna Avrahami access to the Internal Revenue Code Section 831(b) election for certain financial years
Central Bank of Malaysia calls for more captive data
21 August 2017 | Kuala Lumpur | Reporter: Mark Dugdale
The paucity of data on captives needs to be addressed as a matter of priority, according to Muhammad bin Ibrahim
Coverage for pre-existing conditions tops healthcare reform concerns
02 August 2017 | Ohio | Reporter: Becky Butcher
Retaining insurance coverage for pre-existing conditions is the most vital feature of successful long-term healthcare reform, according to a survey by KeyBank
OECD releases additional guidance on CbC reporting
21 July 2017 | Brussels | Reporter: Becky Butcher
The Organisation for Economic Co-operation and Development (OECD) has provided further guidance on the implementation of country-by-country (CbC) reporting under its framework on base erosion and profit shifting (BEPS) initiative
UK government sets out new ILS framework
21 July 2017 | London | Reporter: Becky Butcher
The UK Treasury has published new rules for insurance-linked securities (ILS) as the country aims to grab a share of the rapidly growing market
US agrees to sign US-EU covered agreement
18 July 2017 | Washington DC | Reporter: Becky Butcher
The US Department of the Treasury and the Office of the US Trade Representative have revealed their intent to sign the bilateral agreement between the US and EU regarding insurance and reinsurance
UK to implement ILS regime this autumn
27 June 2017 | London | Reporter: Becky Butcher
London’s insurance-linked securities regulation is now being finalised by the UK Government ready for implementation this autumn, according to a letter sent from HM Treasury to the London Market Group’s Nicolas Aubert