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
Key areas of the new framework are –
- a more fully-articulated, risk-based capital and solvency regime (implemented for long term business on 30 June 2018);
- enhanced regulatory reporting;
- additional conduct of business requirements;
- enhanced corporate governance requirements;
- the introduction of a group supervision framework;
- enhanced requirements in respect of general insurance intermediation; and
- public disclosure requirements where relevant.
Further details on all of the above areas as well as on other aspects of the project to develop the Island’s new insurance framework 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
In accordance with the Authority's commitment to periodically update the Roadmap, first issued in June 2013, please see the following links:
The updated Roadmap provides regulated entities and other interested parties with information on progress made to date.
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 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
A record of consultations and other publications issued as part of the project to update the Island’s regulatory framework can be found here.
Interested stakeholders are recommended to subscribe to the Authority’s RSS feed, to ensure that news relevant to the ICP project is received promptly. To subscribe, click here for the 'RSS feed'.