Non Life commercial Insurance / Captive Insurers / Insurance Special Purpose Vehicles (ISPVs) / Standby Insurers

General

The Isle of Man has a large and respected insurance sector.

Information on the size and level of activity of insurers located in the Isle of Man may be found by clicking the STATISTICS link opposite.

In the Isle of Man, insurance regulation falls under the Insurance Act 2008 with secondary legislation and guidance made or issued under that Act. Further details of the Act, its secondary legislation and guidance may be found by clicking the LEGISLATION & GUIDANCE link opposite.

Unless relevant exemptions or exclusions apply, the carrying on, or holding out as carrying on, of insurance business in or from the Isle of Man is required to be authorised or permitted by the Authority under the Insurance Act 2008.

In addition to conventional companies, Isle of Man authorised insurers may be established as protected cell companies, protected cells, incorporated cell companies, incorporated cells and limited partnerships.

For a list of entities regulated by the Authority, click here.

Further details on the authorisation of insurers, regulatory reporting requirements and the Authority’s supervisory methodology may be found by clicking the relevant links opposite.

Details of the types of insurance which fall within each of the 13 classes of insurance available in the Isle of Man may be found under regulation 3(3) of the Insurance Regulations 2025. For quick reference, a general description of the non long-term classes follows below.

Commercial non-life insurance – classes 3 to 9 and 11

As a general description, a commercial non-life insurer (or commercial non long-term insurer) provides non-life insurance to policyholders that are otherwise unrelated to the insurer, or reinsurance with underlying policyholders that are otherwise unrelated to the insurer.

Captive Insurers (Captives) – class 12

As a general description, a captive is an authorised insurer that insures and/or reinsures the risks of the group to which it belongs, and parties connected to that group. Subject to the approval of the Authority, a captive may also have a limited amount of other (re)insurance business.

Captives may undertake life or non-life insurance (within class 12 restrictions). Captives might also be utilised as insurance special purpose vehicles, as standby insurers and/or in fast-track insurance authorisation processes.

The Isle of Man is recognised as being one of the leading centres from which to operate captive insurance and has a strong reputation for attracting high quality business of that type. The Island offers a broad range of captive management services, including representatives of the world’s leading captive management groups.

Insurance Special Purpose Vehicles (ISPVs) – class 13

As a general description, an ISPV is a fully funded insurer and/or reinsurer established in respect of a narrowly defined special purpose.

ISPVs may undertake life or non-life insurance (within class 13 restrictions). ISPVs might be used in any situation where the full funding of insurance risk is a viable approach (for example, in the transfer of insurance risk into capital markets, as an alternative approach to funding captive insurance and/or as part of fast-track insurance business authorisation processes).

Standby Insurers – potentially any class

A standby insurer is an insurance and/or reinsurance entity (usually a captive) authorised in all respects except that it cannot commence its authorised activities until the Authority approves a financial business plan for its proposed business. This is a form of pre-authorisation facilitating speed to market for prospective business opportunities, including potentially as part of fast-track insurance business authorisation processes.