Insurance (Conduct of Business)(Long Term Business) Code 2018
The Isle of Man Financial Services Authority (“the Authority”) has today issued the Insurance (Conduct of Business) (Long Term Business) Code 2018 (“the Code”).
The Code forms part of the Authority’s regulatory development work outlined in the “Roadmap for updating the Isle of Man’s regulatory framework for insurance business” through which the Authority proposes to introduce more detailed conduct of business requirements to complement the Island’s existing regulatory framework, in order that it remains up to date, appropriate to the characteristics of the Island’s insurance sector, and consistent with international market developments and standards.
Implementation of most of the requirements of the Code is with effect from 1 January 2019, with the exception of requirements in relation to the Key Information Document and the Summary Information Document which will be implemented with effect from 1 July 2019.
The Code has been the subject of a long period of positive engagement with the life insurance sector since 2014 and it introduces new requirements in a number of areas with the overriding aim of requiring insurers to embed the fair treatment of policyholders within their business culture and to implement policies and procedures which reflect fair treatment as a key strategic objective. The Code has had regard to developments in other jurisdictions and the Code takes account of comparable requirements outside the Island.
Karen Badgerow, Chief Executive of the Isle of Man Financial Services Authority commented “This is a major milestone in the development of the Island’s regulatory framework for long term business, which will enhance the protection afforded to policyholders of the Island’s life insurers in line with the Authority’s regulatory objectives, in a manner that is consistent with international standards. We are extremely grateful to the industry for the way in which it has engaged with us during the development of the Code and look forward to further productive collaboration during 2019 and beyond.”
For further information, please refer to the Authority’s legislation webpages.