Beijing Airport Captive Management Consulting (BACM) has formed a joint venture with Alternative Risk Management (ARM), a Guernsey-based independent insurance manager.
The venture will see both firms work together to create captive insurance infrastructure and provide captive insurance services for Chinese businesses.
BACM is backed by the Beijing Airport Economic Core Zone (BAECZ), which functions as a centre for Chinese businesses and industries. In March, BAECZ signed a memorandum of understanding (MoU) with Guernsey Finance, the promotional agency for the British Crown dependency’s finance sector.
“Chinese companies with international operations and those looking at expanding overseas are considering ways to use captive vehicles for their risk management needs rather than having to insure through the commercial market,” said ARM managing director Charles Scott, who also said that captive insurers are going to be at the forefront of innovation for China’s insurance sector.
“It is therefore an opportune time to have established a key partnership on the ground in Beijing,” Scott added. “The fact that Guernsey Finance signed an MoU with the Beijing Airport Economic Core Zone in March really facilitated our own agreement.”
The partnership follows the establishment of Brilliant Reinsurance (Guernsey) Limited, the first Chinese-backed re/insurer to operate in Guernsey. Brilliant Reinsurance is also managed by ARM, and will focus on business being retroceded from the Lloyd’s of London market.
In the past year, four insurance-related MoUs were signed between Chinese and Guernsey entities. The largest of these was the MoU between the Guernsey Financial Services Commission and the China Insurance Regulatory Commission, which was signed in March.
Related stories:
Review into insurance commissioned by Guernsey States
British and Hong Kong regulators to work together on fintech
.jpg)
