Insurance

Gibraltar Insurance

Gibraltar has established itself as a leading financial services centre, with a reputation for firm but fair regulation and a mature infrastructure of professionals across a wide range of fields. Historically, Gibraltar's insurance industry was closely linked to the European Union through the United Kingdom's EU membership. This gave Gibraltar-based insurers and intermediaries valuable 'passporting' rights, allowing them to operate across Europe on a Gibraltar licence, without applying for a separate licence in each territory.

In 1997, Gibraltar acceded to the Single European Market for Insurance, with its regulatory body, the Gibraltar Financial Services Commission, recognised as a competent regulatory authority within the EU. Since then, insurance institutions of many types have made Gibraltar their home and continue to benefit from being based here.

How does Gibraltar insurance work post-Brexit?

Brexit reshaped the way Gibraltar insurers access their key markets, but the jurisdiction has adapted with confidence. Gibraltar-based insurers have continued to serve the UK market through transitional arrangements until the end of 2025, moving thereafter to the new Gibraltar Authorisation Regime (GAR) framework.

The GAR framework provides a clear, stable route for Gibraltar insurers to write UK business, preserving the deep connection between the two markets. For financial leaders assessing where to base their operations, this continuity offers the certainty needed to plan ahead and grow.

Why does Gibraltar remain attractive for insurers after Brexit?

Despite the changes brought by Brexit, Gibraltar remains a compelling base for insurance and reinsurance middle-market organisations. Its advantages include:

Unfettered access to the UK market for EU insurers, an opportunity no longer available from within the EU.

Membership of the Schengen area, enabling free travel and smooth business transactions across Europe.

A long-standing reputation for robust insurance regulation.

A strategic position as a trusted hub between the UK and Europe.

This combination of market access, mobility, and regulatory credibility positions Gibraltar as a strategic gateway for insurers looking to serve both UK and European clients.

What regulatory standards apply to Gibraltar insurers?

The Gibraltar Financial Services Commission maintains a firm regulatory stance, ensuring Gibraltar is regarded as one of the better-regulated financial centres. In keeping with the requirement of its statute to match UK regulatory standards and practices, the Commission continues to uphold high expectations for the firms it oversees.

In July 2014, the Government of Gibraltar confirmed written confirmation from HM Treasury, United Kingdom Government, that Part VII transfers can take place between UK and Gibraltar insurers, further strengthening the ties between the two markets.

What is Solvency II and how does it apply in Gibraltar?

Solvency II took effect in Gibraltar on 1 January 2016. It's a Directive in European Union law that codifies and harmonises insurance regulation, primarily concerning the amount of capital insurance companies must hold to reduce the risk of insolvency. The Gibraltar Financial Services Commission fully supports these goals and takes its obligations to implement Solvency II seriously. It expects firms to do likewise, because a well-managed and well-capitalised market is central to Gibraltar's reputation.

What opportunities exist for Insurance Linked Securities in Gibraltar?

Gibraltar has strong ambitions to become a jurisdiction of choice for Insurance Linked Securities (ILS). In 2014, the Gibraltar Financial Services Commission finalised and published its guidelines on the process and requirements for establishing and licensing an ILS vehicle as a Special Purpose Vehicle (SPV) in Gibraltar. As the market evolves, this framework creates real opportunities for insurers seeking innovative ways to manage and transfer risk.

How is Gibraltar's insurance industry performing?

Gibraltar's insurance industry continues to grow, particularly in coverage for UK motorists. With around 90% of premiums written derived from UK risks, the jurisdiction remains in a strong position. The move to the GAR framework secures this vital connection, giving insurers the confidence to build for the future.

How can RSM support your insurance business?

RSM has extensive experience across the insurance industry, servicing non-life, life, and reinsurance business, including captives. Working closely with our international partners, our local experts support you on the issues that matter most, including:

• Compliance and Regulatory Reporting.
• International Financial Reporting Standards.
• Comprehensive Taxation Compliance and Advisory Services.
• We take the time to understand your business, so we can help you navigate change and move forward with confidence.

How can we help you?

Please don’t hesitate to get in touch with us today!