Isle of Man consults on regulations

The Isle of Man is considering reforming its insurance regulations, including making the regulatory  process for captive insurers easier. 

The Isle of Man Financial Services Authority has launched a consultation to get evidence, and feedback, about regulations due to come into force next year.

The FSA has updated its proposals for the Insurance Regulations 2025 which build on earlier consultations. 

The changes include:

Clearer rules for certain types of insurers like captive insurers (Class 12) and fully funded insurers (Class 13)

New processes to handle specific issues for protected cell companies (a type of insurer structure)

Introducing standard fees for certain insurers, removing the need for case-by-case decisions on fees.

The proposals update qualifying criteria for captives which are easier to use and adapt. 

They also establish new default admission controls for fully funded insurers to help ensure that complex or long tail business must obtain the Authority’s approval to apply for class 13 authorisation. It also provides for a newly specified alternative remedy available to the Authority to petition for receivership authorised PCC cells which has an unresolved breach of its minimum capital requirement (providing a specific alternative to the option of petitioning for the winding up of the entire PCC).

The FSA said the consultation is relevant to companies using special-purpose insurance vehicles or those advising them, insurers that need  full financial backing (e.g., captive or fully funded insurers) and any Isle of Man insurance firms or applicants as well as their advisors.

The deadline for feedback is 7 February 2025.

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