The Life Assurance Sector
The Isle of Man has probably the largest offshore life assurance sector. The Island's effective regulatory regime makes it attractive to high quality business, and this has helped it to develop into one of the worlds leading centres for offshore life assurance. It is home to the international subsidiaries of highly respected life assurance companies, which attract business from all around the world. An indication of how successful the Island is at attracting new Life business is given by the total funds under management for the sector. For the year ended 31 December 2013 these totalled £56.5 billion.
The Isle of Man, with its wealth of experience in the international financial services sector, has exceptional qualifications in the field of life assurance. Furthermore the Island has a highly trained workforce with experience of the international life insurance market, its products and administration requirements. Its people are responsive to the needs of this demanding market and provide the high levels of service required. Specialists in their respective fields are also on hand to assist new and existing businesses..
Under the Income Tax (Corporate Taxpayers) Act 2006, life assurance companies on the Island are subject to income tax at a rate of 0%.
The life assurance companies based on the Island are leaders in the development and distribution of some of the most innovative life assurance products to be found. They are ready to meet the changing demands of an international market. It is this expertise that attracts highly respected corporations to set up their insurance subsidiaries in the Isle of Man.
One of the key drivers behind the growth in life business on the Island is the security afforded to policyholders by the Policyholders Protection Scheme, where in the event of a default, and subject to the Regulations, the scheme manager shall pay to the policyholder out of the Policyholders' Compensation Fund a sum equal to 90% of the amount of any liability of the insurer under the contract. The Policyholders' Compensation Fund is funded by a levy on all life insurance companies operating on the Island. Unlike many other policyholder protection schemes, the Island's system operates globally, covering investors no matter where they reside. For further information see the Life Insurance (Compensation of Policyholders) Regulations 1991.