Two world firsts in Guernsey’s insurance sector demonstrate how the island’s expertise and regulatory regime allow innovation to flourish while still meeting current international standards. Guernsey was the domicile of choice as Paratus Group launched the world’s first parametric fuel price insurer, and also by Replexus, which used a Guernsey ILS structure for the world’s first catastrophe bond covering pure volcanic eruption.
These, and Guernsey’s ILS sector and its connection with capital markets, will be discussed at WE ARE GUERNSEY’s 2021 ILS Insight webinar, The Origin of Innovation, which takes place next week.
Paratus Maritime Insurance Limited (PMIL) was launched to create price certainty, allowing policy holders to manage volatility while complying with new rules to limit sulphur in fuel oil on ships and a scheme to facilitate carbon neutral growth.
Robus Group was appointed as insurance manager and provided advice on structuring and Guernsey’s regulatory framework, supporting PMIL to become licensed as a Category 3 general insurer within a matter of weeks.
Robus Director and Group Head of ILS Adele Gale said Guernsey was fortunate to benefit from an engaged regulator that embraced innovative prospects.
“Robus’ knowledge of the regulatory regime allowed Paratus to assess the merits of Guernsey against other jurisdictions and, with a recommended structure in mind, we facilitated a meeting with the regulator in early 2020,” she added.
The first pure volcanic eruption catastrophe bond, sponsored by the Danish Red Cross, was brought to market through a Guernsey-domiciled reinsurance structure managed in Guernsey by Aon Insurance Managers.
For more information and to register for ILS Insight on 13 July, visit the event website.