Investor Presentaiton
So to conclude, I see no immediate threat to Guernsey from post-2007 regulatory
developments though neither do I see business opportunities. However, I cannot say that
this will always be the case and clearly we must continue to keep ourselves in the
informational loop.
Thank you Jeremy. Good morning everyone. I am John Dunford, Deputy Director of the
Banking and Insurance Supervision and Policy Division. As most of you will know I have
returned to Insurance to hold the fort for Caroline Radley whilst she is seconded to the Channel
Island Brussels Office. It is good to be back and what a lot is happening!
Slide: Agenda
There are four main areas I would like to cover today. A review of 2014 activity, a look
forward to 2015, Insurance supervision under PRISM, and a number of other risk matters.
Slide: Review of 2014 activity
In relation to 2014 I will review the statistics, explain how we have delivered on the
commitments made at last year's presentation regarding the streamlining of workflows, review
the activity on the development of the solvency framework and other core principles, touch on
recent stress testing and then try to keep your interest while I explain the impact of recent UK
GAAP changes.
Slide: Statistics
First let look at some statistics
At the end of 2013 the figures for Gross written premium, Gross Assets and Net Worth were
steady compared with the prior year. The majority of growth is still in cells, specifically
insurance linked securities.
Slide: Growth in International Insurers Graph
Currently there are 809 international insurers. We broke through the 800 barrier in June. We
continue to deal with a large number of applications each month (the quality of which I will
come to later). This graph shows the steady growth over the last 10 years due mainly to cell
growth. In 2012 this was mainly due to the UK Mortgage Indemnity scheme cells where as in
2013 and 2014 it is due primarily to Insurance Linked Securities cells
Slide: New Business
In the 12 months ended September 2014 there have been 95 new international insurers
compared to 79 in the previous 12 months. This includes 57 PCC cells, 16 ICs and even 9
Captives which have been in steady decline for some years. In addition we have welcomed the
licensing of one more Insurance Manager, the second in two years.
There have been 64 surrenders in the same period 39 of which were in December 2013 when
32 dormant PCC cells were closed.
Slide: New Business Pie Chart
This chart shows the type of new insurance cover written in the past 12 months.
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