Captive insurance is beginning to take root in China, according to an executive from Guernsey, a British Crown dependency.
Charles Scott, managing director of Alternative Risk Management (ARM), said that the Guernsey-based firm has made significant progress in introducing captive insurance to the Chinese market.
Last year, ARM established a joint venture with Beijing Airport Captive Management Consulting (BACM), which will create captive insurance solutions for various businesses in China.
“Personally I am very excited about the opportunities in China,” Scott said at a recent event organised by Guernsey Finance, the promotional agency for the Guernsey finance industry. “Captives are virtually unheard of, virgin territory, and I know of no other domicile marketing captives to China corporates.”
Scott added that he had travelled around 15 times to China in the past two-and-a-half years, and several more deals with Chinese clients are on the way.
“I believe there is a huge opportunity and I would absolutely urge my colleagues in the industry to come over, do the hard yards, and you will see the rewards,” he said.
Also at the event was Wendy Weng, Guernsey Finance’s representative to Shanghai. She said that the Chinese government is supportive of Guernsey’s captive insurance efforts in the market, which also educates businesses about the importance of insurance.
Weng visits first- and second-tier Chinese cities monthly, meeting local government officials, intermediaries, financial institutions, and professionals to promote Guernsey and its services. Guernsey hosts at least one event a year in mainland China.
