Guernsey and Beijing Collaborate on a Joint Captive Insurance Enterprise

Guernsey’s Alternative Risk Management (ARM) and Beijing’s Beijing Airport Captive Management Consulting (BACM) have teamed up for a joint venture. ARM, a Guernsey-based independent insurance manager, will be working with BACM to provide captive insurance services to Chinese businesses and work to establish an additional set of captives and increase overall captive infrastructure in China.

This is remarkable because, at the moment, BACM is the sole captive insurance consulting group located in China. In addition, BACM is being backed by the Beijing Airport Economic Core Zone (BAECZ), which is a central hub for Chinese businesses and the industrial and creative industries. A memorandum of understanding was signed in March of 2017 between Guernsey Finance and BAECZ, and this joint venture was announced and launched in late November.

Charles Scott, ARM’s managing director, stated about the venture, “Chinese companies with international operations and those looking at expanding overseas are considering ways to use captive vehicles for their risk management needs rather than having to insure through the commercial market. It is therefore an opportune time to have established a key partnership on the ground in Beijing. The fact that Guernsey Finance signed an MoU with the Beijing Airport Economic Core Zone in March really facilitated our own agreement.” He also stated that, in the coming years, captive insurers are going to be at the forefront of innovation for the Chinese insurance sector.

This is not the first collaboration between Guernsey and China; earlier in November, Guernsey Finance announced the formation of Brilliant Reinsurance (Guernsey) Limited, an ARM-managed reinsurer that is Chinese-backed and operating in Guernsey. Brilliant Reinsurance will be focusing on business that has been retroceded from Lloyd’s of London. In addition, Chinese and Guernsey entities have signed four insurance-based MoUs in the past year, with the largest of the four being the one between the China Insurance Regulatory Commission and the Guernsey Financial Services Commission in March.

Caitlin Morgan Captive Services provides clients with captive insurance solutions supported by years of experience in establishing the successful formation and implementation of a wide range of captives. To learn more about how we can help you, please contact us at (317) 575-4440.

Sources: Captive Insurance Times, Insurance Business