The Guernsey Financial Services Commission has welcomed the announcement by the US National Association of Insurance Commissioners (NAIC) of the jurisdiction application for Qualified Jurisdiction status.
The application was lodged in July with the support of the Guernsey International Insurance Association and the States of Guernsey, and marks an important step toward improving the terms under which Guernsey-based insurers and reinsurers can operate across the US states.
If approved, the recognition is expected to streamline cross-border market access, boost capacity for US consumers, and drive long-term economic growth.
The application constitutes an important component of the Finance Sector Strategy 2035 launched jointly by the States, Commission, Guernsey Finance and GIBA in February this year.
Financial services represent a cornerstone of Guernsey’s economy, contributing £1.3 billion and roughly 40% of the island’s Gross Value Added (GVA). With 50 years of expertise, the jurisdiction spans across insurance, banking, private wealth, investment and funds, pensions and sustainable finance.
William Mason, Director General of the Guernsey Financial Services Commission, commented: “Guernsey has a long and successful track record as an international insurance centre. The quality of our regulation was endorsed by the International Association of Insurance Supervisors through its independent assessment undertaken in 2019.
“We think that the skills and capacity of the Bailiwick’s insurers can play a helpful role in delivering value for US consumers. We are looking forward to working with our counterparts in the NAIC over the coming months to explain Guernsey’s robust and proportionate approach to insurance regulation.”
Because US insurance is regulated at the state level rather than federally, the NAIC’s Mutual Recognition of Jurisdictions (E) Working Group oversees the evaluation of foreign supervisory regimes and maintains the official lists of Qualified and Reciprocal Jurisdictions.
Guernsey’s application sets out the jurisdiction’s regulatory framework, insurance sector, supervisory approach, cooperation arrangements and other matters relevant to the NAIC’s review process.
It covers laws and regulations, regulatory practices, reinsurer performance, enforcement of final US judgments and solvent schemes of arrangement.
Lisa Peterson, Chief Actuary at the Guernsey Financial Services Commission, said: “Before joining the Commission, I worked at Canada’s insurance and pensions regulator and one of the things that has struck me since working in Guernsey is how familiar many aspects of the regime feel from a North American supervisory perspective.
“Guernsey’s approach is proportionate and tailored to the nature of its market, but it is also grounded in the same core objectives: solvency, policyholder protection, sound governance and effective cooperation between regulators.”
Adding: “The application also highlights the Commission’s statutory powers to cooperate and exchange information with insurance supervisors, including US state insurance regulators. The Commission has entered into 84 MoUs and MMoUs and has been a signatory to the IAIS Multilateral Memorandum of Understanding since November 2010. It was also upgraded to the Enhanced Multilateral Memorandum of Understanding of IOSCO in 2024, following an US Securities and Exchange Commission-led assessment.”
