Guernsey’s Finance Chairman Lyndon Trott has finalised a Memorandum of Understanding (MoU) with Beijing Airport Economic Core Zone, BAECZ, to expand its captive business in China.
Under the MoU, both parties have agreed to cooperate in captive insurance market development, financial innovation, and information exchange.
The move is intended to aid Chinese captive market development both locally and globally and accelerate Beijing Shunyi district’s goal to become China’s regional captive domicile centre.
Guernsey’s Deputy Chief Minister, Trott, said; “Captives are going to be at the forefront of innovation in Asia’s insurance market and Guernsey is proud to be recognised as a centre of excellence in this area. It has been nearly 10 years since we established our Guernsey representative office in China and this MoU is yet another step forward in Guernsey’s development in the region.”
“Businesses in this zone are eager to learn the advantages of utilising captive insurance vehicles as opposed to insuring through the commercial market and Guernsey as Europe’s number one captive insurance domicile is perfectly placed to assist them with this.”
Deputy Director Hu, added; “Based on the knowledge and experience that Guernsey has from more than 50 years’ experience as an international finance centre, we are delighted to have such a partner to cooperate with and look forward to working with our friends from Guernsey after the signing.”
This MoU comes in addition to MoUs already in place between the two authorities – in June last year, Guernsey and China’s insurance sectors signed MoUs to facilitate captive insurance market development, international communication, financial innovation and information sharing.
Discussions have been ongoing over the last six months with three Chinese delegations visiting Guernsey to broaden understanding of the insurance and asset management products on offer.
Trott commented the MoU further reflects Guernsey’s commitment “to build and develop our cross-border communication with China, specifically the Beijing Airport Economic Core Zone – a key hub for China’s industrial, business and creative sectors.”