Guernsey vs bermuda vs isle of man INSURANCE
INVESTMENT FUNDS
TRUST & COMPANY
PENSIONS
INVESTMENT MANAGEMENT
BANKING
Guernsey vs bermuda vs isle of man Guernsey is home to a number of international life insurer branches. This comparator looks at the investors protection offered across several jurisdictions with offshore life branches.
2
life branches investor protection Guernsey
bermuda
isle of man
No income tax payable for a non-resident investor.
No income tax payable for a non-resident investor.
No income tax payable for a non-resident investor.
Jurisdictional Tax Treatment
No corporate tax or capital gains tax; dividends recieved net of witholding tax; tax on reciept of proceeds depending on tax residence.
No corporate tax or capital gains tax; dividends recieved net of witholding tax; tax on reciept of proceeds depending on tax residence.
No corporate tax or capital gains tax; dividends recieved net of witholding tax; tax on reciept of proceeds depending on tax residence.
Financial Regulator
Guernsey Financial Services Commission (GFSC).
Bermuda Monetary Authority.
Isle of Man Financial Services Authority.
Administration of Branch
Carried out by a regulated appointed insurance manager.
Carried out by a regulated appointed insurance manager.
Carried out by a regulated appointed insurance manager.
Legal Framework
As a British Crown Dependency, Guernsey has been independent for more than 800 years and its links to the UK are through the Crown rather than Parliament. As a result, Guernsey has its own legislature, The States of Guernsey, which determines local laws including taxation.
A British Foreign Territory that enjoys independent and stable on legal, regulatory, and political side.
A British Crown Dependency that enjoys independent and stable legal, political and regulatory framework.
3
Guernsey vs bermuda vs isle of man Guernsey
4
bermuda
isle of man
Policyholder for Protection Requirements
Yes, as part of standard conditions that is applied to all long-term life insurance.
Insurance amendment Act 2018; Reform of S24 on the Insurance Act 1978.
Yes, access to Compensation scheme regulated under Isle of Man Life Assurance (Compensation of Policyholders) 1991.
Description of Policyholder Protection
All long-term insurers are subjected to a Standard Condition issued by the GFSC requiring the appointment of a Guernsey-based trustee to ensure assets representing at least 90% of the policyholders’ liabilities are held in a separate trust account.
Requirement to segregated long-term business fund where policyholders have priority claims over unsecured creditors in event of insolvency.
All long-term life insurers policyholders have access to Statutory protection scheme.
Access to Compensation
Policyholders have access to the value of the trust which is held in a segregated account in the event an insurer cannot meet its liabilities.
The value of the long term business fund.
90% of the liabilities under the contract will be paid out from the Compensation Fund in the event a life insurer is unable to meet its liabilities.
Financial Ombudsman
4
4
4
Guernsey vs bermuda vs isle of man We would like to thank Etienne Bosch at Discovery Limited, Cobus Kruger at Citadel Investment Services and Gary Tansell at BWCI for their contributions.
5
Guernsey vs bermuda vs isle of man
Safety & security
Guernsey
SUBSTANCE & STABILITY
6
EXPERTISE
weareguernsey.com +44(0) 1481 720 071
info@weareguernsey.com
Guernsey Finance, PO Box 655, St Peter Port, Guernsey, GY1
Please recycle me
70% of the wood used in creating this brochure is recycled material, with the remaining 30% from a ‘controlled/sustainable’ wood forest