Insurance business on the Isle of Man is principally governed by the Insurance Act 2008 and the Insurance Regulations 1986.
The Authority also issues Guidelines which set out the essential features of the Act and Regulations and any Directions issued by the Authority that are not specific to individual cases.
Insurance Act 2008
The Insurance Act 2008 came into operation on 1st December 2008 with the exception of a few minor aspects. The 2008 Act consolidates most of the pre-existing 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.
For more information on the implementation of the 2008 Act, see the Insurance Act 2008 page.
Regulations and Guidance
The Insurance Regulations 1986 and Guidance Notes are available for download in PDF format via the links in the table below.
The Insurance (Valuation of Long Term Liabilities) Regulations 2007, have effect for periods ending on or after 31st March 2008. The Regulations set out valuation and disclosure requirements for long term insurance liabilities for regulatory reporting purposes.
The above Regulations, which were made under now-repealed legislative provisions, will continue to have effect following the implementation of the new Act. A further exercise to consolidate these regulations will be carried out in due course. For further information on the application of the above Regulations following the implementation of the 2008 Act, see the Insurance Act 2008 page.
On 18 November 2011, the Insurance (Solvency) (Amendment) Regulations 2011 were made with effect from 31 December 2011 and amend the Insurance Regulations 1986, the Insurance (Protected Cell Companies) Regulations 2004 and the Insurance (Limited Partnerships) Regulations 2004. These regulations provide for how contingent debt assets are treated for the purposes of calculating the minimum margin of solvency of an insurer. In addition, they extend the period of admissibility of certain debt assets for the purposes of calculating the minimum margin of solvency of an insurer. A copy of these Regulations can be accessed via the link in the table below.
In order to provide a simpler and more transparent framework for permitting captive insurers to make loans to their associates that are fully admissible for the purpose of calculating the captive’s minimum margin of solvency, the Insurance (Solvency) (Amendment) Regulations 2012 were made with effect from 30 June 2012, a copy of which can be accessed via the link in the table below.
Corporate Governance Code of Practice for Regulated Insurance Entities (“the CGC”)
The CGC establishes a principles-based governance framework in the form of binding guidance made by the Authority under section 51(1) of the Insurance Act 2008. Guidance within the CGC is predominantly expressed as required outcomes, with the means used by directors and senior managers in achieving those outcomes being subject to proportionality. The CGC came into operation on 1st October 2010 and is applicable to insurers and insurance managers regulated by the Authority.
Transfer of Functions
Pursuant to the Transfer of Functions (Isle of Man Financial Services Authority) Order 2015 (as amended), with effect from the 1 November 2015 –
- the Insurance (Miscellaneous Amendments) Regulations 2015 make consequential amendments to certain regulations made under the Insurance Act 2008, including the Insurance (Fees) Regulations 2015; and
- the Corporate Governance (Amendment) Code of Practice for Regulated Insurance Entities makes consequential amendments to the Corporate Governance Code of Practice for Regulated Insurance Entities.
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