Insurance Framework

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, which resulted in a long-term project to update the framework to enable a high level of observance with the ICPs. This project was concluded in 2021.

The Isle of Man’s regulatory framework for insurance business

Key areas of the new framework include –

  • a more fully-articulated, risk-based capital and solvency regime with proportionality applied for captive insurers;
  • enhanced regulatory reporting;
  • additional conduct of business requirements;
  • enhanced corporate governance requirements;
  • the introduction of a group supervision framework (currently implemented for long-term business only); and
  • enhanced requirements in respect of general insurance intermediation.

Further work is being carried out in respect of public disclosure and group supervision for non long-term business insurers, with the expectation this will be completed in 2024/2025.

Details on consultations held in respect of the project, including quantitative impact studies (or ‘QIS’) can be found on the Isle of Man Government’s consultation hub


Details of when key components of the new framework were implemented can be found here.