Guernsey consultation on a Green Discount for Life Insurer Capital Requirements

The Guernsey Financial Services Commission (the “GFSC”) has issued a consultation paper in respect of proposed amendments to the Insurance Business (Solvency) Rules, 2016. The amendments would reduce the capital requirements applicable to spread risk for the green assets of commercial life insurers and commercial life reinsurers. It is proposed that the initiative be limited to life insurers, as general insurers typically have a shorter investment time horizon and greater liquidity constraints which is not necessarily optimal for the inclusion of green bonds. It is planned that the criteria for green assets would follow those introduced by the Guernsey Green Fund Rules, 2018.

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Kate StoreyPartnerT +44 (0) 1481 748 924kate.storey@walkersglobal.com
Zoë HallamGroup Partner*T +44 (0)1481 748 920zoe.hallam@walkersglobal.com
Jessica RobinsonSenior AssociateT +44 (0) 1481 748 932jessica.robinson@walkersglobal.com