Regulatory Alerts2025-05-16
Rules for Special Purpose Insurers (October 2016)
The Guernsey Financial Services Commission issued the Insurance Business (Special Purpose Insurer) Rules 2016 to establish a distinct regulatory framework for Special Purpose Insurers and attract Insurance Linked Securities business. These rules define SPIs as fully funded entities that must maintain assets equal to their liabilities and restrict capital raising to qualified investors or recognized exchanges. The regulations also amend the Solvency Rules to classify SPIs as Category 6 insurers, thereby exempting them from minimum capital and solvency assessment requirements, with the rules commencing on 1 January 2017.
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