GUERNSEY’S captive insurance industry could be riding out the storm that followed recent hurricane activity. Analysts believe concerns that there might be a repeat of the destruction caused last year by powerful hurricanes such as Katrina and Rita have led to higher premiums.

However, Guernsey Insurance Company Management Association chairwoman Merise Wheatley believes the island can offer a more attractive alternative.

‘One of the main benefits that captives provide clients with is that the premiums can be set to reflect the specific level of risk for that client based on location and other factors,’ she said.

‘So while premiums may go up across the market generally because of hurricane damage, insurance costs through captives are less likely to be affected by cyclical changes in the insurance marketplace.’

Ms Wheatley said the effects of hurricanes and the wider issues of climate change were being monitored by Guernsey’s captive industry, which has clients with interests across the globe.

The impact of climate change on captive insurance will feature as one of the main sessions in the association’s annual conference being held in March.