Non Life Insurance (including Captive Insurance)
Non Life Insurance
The Island’s non life insurance sector is predominantly made up of captive insurers and associated specialist insurance management companies, ranging from subsidiaries of the major international insurance broking and risk management organisations to local operations.
Third party commercial writers and providers of insurance to individuals make up a relatively small portion of the non life market on the Isle of Man.
The Isle of Man Financial Services Authority (“the Authority”) is charged with the regulation of the insurance sector.
Non life insurance companies carrying out insurance business in or from the Isle of Man are required to be authorised under the Insurance Act 2008.
The Insurance Act 2008 consolidated most of the former primary legislation in relation to insurance regulation, including the Insurance Act 1986, the Insurance (Amendment) Act 2004 and the Insurance Intermediaries (General Business) Act 1996. The Act seeks to ensure that senior management and controlling parties of insurance businesses are fit and proper, and that the companies are financially sound.
The Captive Sector
A captive insurance company is, in its purest form, a subsidiary company formed to insure or reinsure the risks of its parent and / or associated group companies. Captives are usually formed to provide alternative risk management solutions to that of the conventional insurance market. The administration of a captive is usually, though not always, outsourced to a specialised captive manager.
The Isle of Man is recognised as being one of the leading centres for captive insurance business. It has a strong reputation for attracting high quality captive business. The Island offers a broad range of captive management services, ranging from small local operations to representatives of the world’s leading captive management groups. Captives have become an integral part of the risk management strategy of large companies, and continue to offer one of the most effective and widely used mechanisms for risk treatment.