A variety of structured insurance products particularly insurance transformers and vehicles for securitisation of insurance risk are evolving within Jersey's positive legislative and regulatory environment as a result of the convergence of capital markets and insurance/reinsurance markets and Jersey's expert knowledge for securitisation using SPVs and other financial structures.




The Insurance Business (Jersey) Law 1996

The Insurance Business (Jersey) Law 1996 ensures that the insurance supervisory regime in Jersey is in accordance with best international practice and standards whilst at the same time recognising the need to adopt a flexible approach to the authorisation and regulation of the different types of insurance business being undertaken in Jersey (e.g on fees and solvency margins). 


Tax Neutrality

Jersey’s tax neutrality which includes no stamp duty on transaction documents or notes and no withholding tax makes it an attractive jurisdiction for insurance business. Jersey’s Companies Law has the familiarity of many of the provisions of the equivalent English law but with greater flexibility such as having:

  • ICC’s alongside PCCs
  • Guarantee and unlimited companies as well as various partnership structures
  • No provisions on thin capitalisation
  • The ability to make a distribution from any source other than the capital redemption reserve or nominal capital account
  • The ability to have the redemption of redeemable shares and the buy back of shares by a Jersey company funded from any source including capital


Key Facts

  • Protected Cell Companies (and cells thereof)
  • Incorporated Cell Companies (and cells thereof)
  • Reinsurance
  • Insurance Linked Securities 
  • Captive insurance companies
Legislation and Regulation 

All insurance business conducted in Jersey is regulated under the Insurance Business (Jersey) Law 1996.

Long term or general insurance business can only be carried out in or from within Jersey with a permit issued by the Jersey Financial Services Commission (JFSC). Category A permit if the applicant is authorised in another jurisdiction and Category B permit in all other cases, e.g. captives.

Minimum Capital 

The JFSC will normally require an initial capitalization of £100,000 but the Commission has the ability to amend this, both upwards and downwards, should it feel that this amount is inappropriate in the circumstances of the permit holder’s business. 

Solvency Margins 

Jersey has chosen not to follow EU Solvency II (opting for “non-equivalence”) and follows the international standards set by the International Association of Insurance Supervisors (IAIS).

The solvency margin requirements for Category B permit holders are 17.5% of net premium income for general business, and 2.5% of the value of the long-term insurance fund or £50,000, whichever is the greater, for long-term business. 


Category B permit holders are subject to 0% corporation / income tax under Jersey’s zero/ten taxation regime.