Guernsey targeting Chinese captive clients
Guernsey has been making big steps to be the captive domicile of choice for Chinese businesses.
Fiona Le Poidevin, chief executive of Guernsey Finance, is making one of several visits to Hong Kong.
She said Guernsey Finance has put significant time and effort into educating the Chinese insurance industry about captives.
The Guernsey branch of Willis has already been working with large Chinese corporates to ensure they are ready to establish a Guernsey captive once the Chinese market has more open regulation.
And Hong Kong-based captive manager Riscus is already doing feasibility studies for Chinese companies to form captives. They anticipate Hong Kong would be the planned domicile, however.
Yum! Brands already covers some of its Chinese risks through their captive’s global programme. Andy Steinbach, director of risk management for Yum! Brands, said there are cultural challenges to be overcome, however. “The cultural internal political part is the hardest challenge, and then finding the appropriate partner.
“In a place like China there is a lot of insurance. The Chinese insurance companies have a quite different mind-set from what you see in the US,” said Steinbach.