Insurance Jottings

Lloyd’s heavyweights lead 2020 pre-emption approvals

With the 2020 syndicate business approval process well underway, Lloyd’s blue-chip carriers Beazley, Hiscox and Tokio Marine Kiln head the list of syndicates with third-party capital that have received approval to expand significantly next year.


Chinese companies eye Guernsey captives as they expand in Europe

Guernsey’s reputation for captives is growing among Chinese clients, with the island being the best place for Chinese businesses to set up a captive as they look to expand into Europe, according to Kate Storey, a partner at Walkers.


Ms Storey was a speaker at the Guernsey Finance Shanghai Masterclass, speaking about captives. At the event she highlighted the ability to set up captives quickly in Guernsey, and the proportionate, risk-based approach of its regulator, as among the key benefits of the jurisdiction.


“Proximity to London is a selling point, as is Guernsey’s international reputation as a highly regarded legal and regulatory environment, and the high quality of professional services available within the jurisdiction,” she added.


“The fact that entrepreneurs can set up captives to be owned by a trust arrangement for the benefit of their family members was of interest to the audience,” Ms Storey said.


She pointed to existing co-operation agreements between Guernsey and China as another reason Chinese companies will be comfortable establishing their captives in Guernsey.


Since March 2017 there have been agreements in place between the Guernsey Financial Services Commission and the China Banking and Insurance Regulatory Commission, and between Guernsey Finance and the Beijing Airport Economic Core Zone.


Charles Scott, managing director of Guernsey-based Asset Risk Management, also spoke at the event, and said working in China is paying dividends for companies that take the time to visit.


“We are working on a business plan for the first Chinese-owned Protected Cell Company as well as a cell in the ARM-owned Windward insurance PCC,” Mr Scott said.


“There are a number of other captive projects we are working on, but these are not in the advanced stage yet.”


Guernsey has had a permanent representative in China for more than a decade and has built contacts with government, regulators and potential clients in a range of activities over that time.


Gareat snubs London capacity at €2.2 billion XoL renewal over Brexit

French terrorism mutual Gareat will not accept UK-domiciled or Lloyd’s Brussels security for participation on its upcoming €2.2 billion+ Excess of Loss renewal on the 1st January 2020 because of concerns over the UK’s withdrawal from the European Union and implications this might have on future claims collections.


Axis backs away from coal and oil sands underwriting

On the 16th October it was reported that Bermudian (re)insurer Axis Capital is to stop writing new primary insurance or facultative reinsurance cover for the construction of thermal coal plants or mines and their infrastructure or oil sands extraction and pipeline projects.


US imposing sanctions on Turkey a headache for insurers

The United States’ imposing further sanctions on Turkey creates difficulties for insurers, who may struggle with some of the complexities involved.


Tanker incident will drive up  war risk insurance rates for vessels in the Middle East: DWF

The Iranian oil tanker ‘Sinopa’ damaged by what Iranian media said was a rocket attack, will drive war risk insurance rates for vessels in the Middle East.


Octopus Group survey reveals insurance industry approach to renewables

Insurers plan to divest 21.2 percent of their portfolios from fossil fuels over the next decade and to ramp up allocations to renewable energy to 10.6 percent over the same period, according to a new survey by Octopus Group, a group of ethically-minded financial services and energy supply businesses.