As explained in more detail on the ‘Regulatory Developments’ page the Authority is committed to implementing and maintaining a robust and up to date insurance supervisory framework appropriate to the Island’s insurance businesses.
The Island’s reputation as a well-regulated and internationally responsible jurisdiction is of vital importance to maintain consumer confidence and therefore market share.
The international standards applicable to effective insurance supervision are the Insurance Core Principles (‘ICPs’) issued by the International Association of Insurance Supervisors (‘IAIS’).
The IAIS substantially updated its ICPs in October 2011 in response to developments in insurance markets and supervision since they were last reviewed in 2003. One of the most significant developments over this period was, of course, the global economic crisis which started to manifest itself in 2007. As such, the ICPs emphasise the need for insurers and regulators to understand the nature and degree of risks assumed and provide for them appropriately, thus addressing financial stability concerns with the ultimate aim of protecting the interests of policyholders, beneficiaries and claimants.
The October 2011 update prompted a comprehensive review of the Isle of Man’s existing regulatory framework for insurance, whereby the Authority carried out a gap analysis to compare the updated ICP provisions with the Island’s current framework for the regulation and supervision of insurance business, including general insurance intermediation. Given the degree to which standards have developed since 2003, it is unsurprising that the Isle of Man (like many jurisdictions) identified a number of areas where its framework would need to be amended to maintain its policy of a high level of observance with the ICPs.
Roadmap for updating the Isle of Man’s regulatory framework for insurance business
A fundamental aspect of the new framework will be a more fully articulated, risk-based capital and solvency regime. The concept of risk-based capital is not new to the Island’s insurance sector, and is already contained within the provisions of the Authority’s Corporate Governance Code of Practice for Regulated Insurance Entities (“CGC”). However, the new framework will update and expand significantly on this concept using more detailed implementation measures which will require insurers to calculate regulatory capital using a new risk reflective solvency and capital model.
Further details of the Authority’s development approach in relation to the future capital adequacy and solvency requirements under the Island’s new insurance framework, together with information of other key work streams can be found in the Authority’s ‘Roadmap for updating the Isle of Man's regulatory framework for insurance business'.
Documents in respect of the ICP project
Details of consultations, discussion documents, focus letters and quantitative impact studies (QIS) which the Authority has issued and will issue during 2017 are available on this web page and are set out in the tables below. These details are updated on an ongoing basis to reflect developments in the project.
In addition to those documents, in accordance with the Authority's commitment to periodically update the Roadmap, first issued in June 2013, a link to the June 2017 Roadmap can be found at the bottom of this page. The updated Roadmap provides regulated entities and other interested parties with information on progress made to date.
Please note that the table does not include details of any Authority consultation exercises that are not directly linked to this project. Those will continue to be made available on the Consultations page of this website and will be notified to interested parties separately.
Documents to be issued during 2017
|Topic||Description||Type of document||Target audience||Current anticipated date in 2017|
|Conduct of Business Code for non-life insurance||Conduct of Business Code for non-life insurance business||Consultation||Non-life insurers||October|
|Regulations for risk based capital||Regulations for risk based capital for life insurance||Consultation||Life insurers||October|
|Insurance Regulations 2018||These will replace the Insurance Regulations 2018 and the Insurance (Supplementary Information) Regulations 2016 and will include new regulatory reporting for life insurers as well as any consequential and housekeeping updates.||Consultation||Life insurers||November|
Please note that the above dates are provisional and could change depending on developing circumstances.
The principal objective of a consultation document is to explain and set out the Authority's proposals in respect of its intended regulatory approach and/or draft legislation, in order to seek interested parties' views before the intended approach is implemented and/or draft provisions are finalised.
Such documents have a more formal status than discussion documents, focus letters and other discussions (see below), and stakeholders' feedback (and the Authority's response to such feedback) will be published on the Authority's web-site.
It should be noted that, in order to be considered in respect of a consultation, any responses made previously in relation to discussion documents, focus letters or other discussions should be resubmitted in accordance with the consultation document.
By their nature, discussion documents may raise matters about which the Authority has not yet reached a firm view as to how they should be incorporated within the updated framework, if at all.
Any views or information obtained in this way may be published but will not identify any particular contributor or be presented in a way that could lead to the identification of any particular contributor.
Where considered appropriate, the Authority may write letters to relevant people or organisations inviting their input in relation to particular issues potentially affecting them.
Focus letters may be used, for example, to inform the Authority's approach in ensuring proportionality and carrying out effective impact analysis in particular business areas.
Any views or information obtained in this way will not ordinarily be published. If for any reason views or information are published, the publication will not identify any particular contributor or be presented in a way which could lead to the identification of any particular contributor.
In addition to the above, the Authority is always be ready to discuss relevant issues with its regulated entities and other stakeholders on an individual basis and it will continue to meet with industry and other representative bodies to debate matters of interest.
Record of consultations and publications in connection with the work to update the Isle of Man's regulatory framework for insurance business
|Topic||Documents issued||Type of document||Date issued|
|Valuation and Capital Adequacy||DP14-01 - The Valuation of Assets and Liabilities for solvency purposes||Discussion paper||30 April 2014|
|TS14-01 - Draft technical specification||Technical specification||30 April 2014|
|CP14-04 - Valuation and Capital Adequacy for long term assurance||Consultation paper||31 July 2014|
|TS14-04 - Proposed technical specification to form the basis of QIS1||Technical specification||31 July 2014|
|CP14-04 & TS14-04 - Response to consultation feedback||Feedback||30 Sept 2014|
|Conduct of business||DP14-05 - Conduct of business||Discussion paper||29 July 2014|
|DP14-05 - Feedback on response to DP14-05||Feedback||12 Dec 2014|
|CP15-02 – Conduct of business||Consultation paper||24 July 2015|
|Summary of responses to CP15-02||Feedback||7 July 2016|
|Quantitative Impact Study 1||Launch of QIS1||Instructions||30 Sept 2014|
|Updated technical specification for QIS1||Technical specification||30 Sept 2014|
|Feedback to participants in QIS1||Feedback||6 Aug 2015|
|ERM, Internal Models and Operational Risk||DP14-09 - Enterprise Risk Management, Internal Models and Operational Risk for life insurers||Discussion paper||23 Dec 2014|
|DP14-09 – Feedback on response to DP14-09||Feedback||24 July 2015|
|Insurance (Amendment) Bill 2016||CP15-05 – Insurance (Amendment) Bill 2016 consultation||Consultation paper||30 Sept 2015|
|Quantitative Impact Study 2||CP15-06 – Launch of QIS2 for long term assurance||Consultation paper etc||2 Oct 2015|
|Quantitative Impact Study 2||CP15-07 – Launch of QIS2 for non-life insurance||Consultation paper etc||30 Oct 2015|
|Group Supervision||DP16-02 – Group supervision discussion paper and request for information||Discussion paper||29 April 2016|
|Conflicts of Interest – Life Insurers||DP16-03 – Managing conflicts of interest in the insurance sales process (Long-term insurance)||Consultation paper||7 July 2016|
|Quantitative Impact Study 3||CP16-04 – Launch of QIS3 for non-life insurance||Consultation paper etc||1 Sept 2016|
|Quantitative Impact Study 3 (life insurers)||CP16-05 – Launch of QIS3 for life insurance||Consultation paper etc||4 Oct 2016|
|Quantitative Impact Study 4 (life insurers)||CP17-03/T04 – Launch of QIS4 for life insurance||Consultation paper etc||7 April 2017|
|Insurance (Amendment) Bill 2016||CP16-06 – 2nd consultation||Consultation paper||30 Sept 2016|
|Insurance Intermediaries||DP16-07 – General insurance intermediation||Discussion paper||28 Oct 2016|
|Conduct of Business (non-life insurance)||CP17-01-T01 – Conduct of Business Requirements for non-life insurance business||Consultation||31 Jan 2017|
|Insurance (Conduct of Business) (Long Term Business Code)||CP17-05/T06 – Conduct of Business Code for life insurance business||Consultation||5 May 2017|
|Valuation and Capital Adequacy – Quantitative Impact Study 4 for non-life insurers||CP17-10/T11||Consultation||30 August 2017|
|General Insurance Intermediation||CP17-07/T08||Consultation||28 July 2017|
|Governance/ERM||CP17-10/T11||Consultation||30 August 2017|
|Group supervision||CP17-12/T13||Consultation||9 October 2017|
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