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Isle of Man Government
Reiltys Ellan Vannin
Isle of Man Government Crest

I.O.M.F.S.A

Insurance framework

As explained in more detail on the ‘Regulatory Developments’ page the Authority is committed to implementing and maintaining a robust and up to date insurance supervisory framework appropriate to the Island’s insurance businesses.

The Island’s reputation as a well-regulated and internationally responsible jurisdiction is of vital importance to maintain consumer confidence and therefore market share.

The international standards applicable to effective insurance supervision are the Insurance Core Principles (‘ICPs’) issued by the International Association of Insurance Supervisors (‘IAIS’).

The IAIS substantially updated its ICPs in October 2011 in response to developments in insurance markets and supervision since they were last reviewed in 2003. One of the most significant developments over this period was, of course, the global economic crisis which started to manifest itself in 2007. As such, the ICPs emphasise the need for insurers and regulators to understand the nature and degree of risks assumed and provide for them appropriately, thus addressing financial stability concerns with the ultimate aim of protecting the interests of policyholders, beneficiaries and claimants.

The October 2011 update prompted a comprehensive review of the Isle of Man’s existing regulatory framework for insurance, whereby the Authority carried out a gap analysis to compare the updated ICP provisions with the Island’s current framework for the regulation and supervision of insurance business, including general insurance intermediation. Given the degree to which standards have developed since 2003, it is unsurprising that the Isle of Man (like many jurisdictions) identified a number of areas where its framework would need to be amended to maintain its policy of a high level of observance with the ICPs.

Roadmap for updating the Isle of Man’s regulatory framework for insurance business

A fundamental aspect of the new framework will be a more fully articulated, risk-based capital and solvency regime. The concept of risk-based capital is not new to the Island’s insurance sector, and is already contained within the provisions of the Authority’s Corporate Governance Code of Practice for Regulated Insurance Entities (“CGC”). However, the new framework will update and expand significantly on this concept using more detailed implementation measures which will require insurers to calculate regulatory capital using a new risk reflective solvency and capital model.

Further details of the Authority’s development approach in relation to the future capital adequacy and solvency requirements under the Island’s new insurance framework, together with information of other key work streams can be found in the Authority’s ‘Roadmap for updating the Isle of Man's regulatory framework for insurance business'.

Documents in respect of the ICP project

Details of consultations, discussion documents, focus letters and quantitative impact studies (QIS) which the Authority has issued and will issue during 2017 are available on this web page and are set out in the tables below. These details are updated on an ongoing basis to reflect developments in the project.

In addition to those documents, in accordance with the Authority's commitment to periodically update the Roadmap, first issued in June 2013, a link to the June 2017 Roadmap can be found at the bottom of this page. The updated Roadmap provides regulated entities and other interested parties with information on progress made to date.

Please note that the table does not include details of any Authority consultation exercises that are not directly linked to this project. Those will continue to be made available on the Consultations page of this website and will be notified to interested parties separately.

Documents to be issued during 2017

Topic Description Type of document Target audience Current anticipated date in 2017
Quantitative Impact Study 4 for non-life insurersLaunch of QIS4 for life insurersConsultationNon-life insurersMid July
Intermediation business (general insurers)Proposals for the Island’s general insurance intermediation marketConsultationGeneral insurance intermediariesEnd July
Governance / ERMTo set out the Authority’s proposals in respect of enhanced governance requirements and enterprise risk managementConsultationAll insurersEnd August
Group supervision (excluding solvency)Proposals for a group supervision framework where the Authority is the Group SupervisorConsultation“Designated” life insurersOctober
Conduct of Business Code for non-life insuranceConduct of Business Code for non-life insurance businessConsultationNon-life insurersOctober
Regulations for risk based capital Regulations for risk based capital for life insurance ConsultationLife insurersOctober
Regulations for regulatory reporting Regulations for regulatory reporting for life insurance ConsultationLife insurers November

Please note that the above dates are provisional and could change depending on developing circumstances.

Keeping informed

Consultation documents

The principal objective of a consultation document is to explain and set out the Authority's proposals in respect of its intended regulatory approach and/or draft legislation, in order to seek interested parties' views before the intended approach is implemented and/or draft provisions are finalised.

Such documents have a more formal status than discussion documents, focus letters and other discussions (see below), and stakeholders' feedback (and the Authority's response to such feedback) will be published on the Authority's web-site.

It should be noted that, in order to be considered in respect of a consultation, any responses made previously in relation to discussion documents, focus letters or other discussions should be resubmitted in accordance with the consultation document.

Discussion documents

By their nature, discussion documents may raise matters about which the Authority has not yet reached a firm view as to how they should be incorporated within the updated framework, if at all.

Any views or information obtained in this way may be published but will not identify any particular contributor or be presented in a way that could lead to the identification of any particular contributor.

Focus letters

Where considered appropriate, the Authority may write letters to relevant people or organisations inviting their input in relation to particular issues potentially affecting them.

Focus letters may be used, for example, to inform the Authority's approach in ensuring proportionality and carrying out effective impact analysis in particular business areas.

Any views or information obtained in this way will not ordinarily be published. If for any reason views or information are published, the publication will not identify any particular contributor or be presented in a way which could lead to the identification of any particular contributor.

Other means

In addition to the above, the Authority is always be ready to discuss relevant issues with its regulated entities and other stakeholders on an individual basis and it will continue to meet with industry and other representative bodies to debate matters of interest.

Record of consultations and publications in connection with the work to update the Isle of Man's regulatory framework for insurance business

Topic Documents issued Type of document Date issued
Valuation and Capital AdequacyDP14-01 - The Valuation of Assets and Liabilities for solvency purposesDiscussion paper 30 April 2014
 TS14-01 - Draft technical specification Technical specification 30 April 2014
 CP14-04 - Valuation and Capital Adequacy for long term assurance Consultation paper 31 July 2014
 TS14-04 - Proposed technical specification to form the basis of QIS1Technical specification 31 July 2014
 CP14-04 & TS14-04 - Response to consultation feedback Feedback 30 Sept 2014
    
Conduct of business DP14-05 - Conduct of businessDiscussion paper 29 July 2014
 DP14-05 - Feedback on response to DP14-05Feedback 12 Dec 2014
 CP15-02 – Conduct of businessConsultation paper 24 July 2015
 Summary of responses to CP15-02 Feedback7 July 2016
Quantitative Impact Study 1 Launch of QIS1Instructions30 Sept 2014
 Updated technical specification for QIS1 Technical specification30 Sept 2014
 Feedback to participants in QIS1 Feedback 6 Aug 2015
    
ERM, Internal Models and Operational RiskDP14-09 - Enterprise Risk Management, Internal Models and Operational Risk for life insurersDiscussion paper 23 Dec 2014
 DP14-09 – Feedback on response to DP14-09Feedback 24 July 2015
Insurance (Amendment) Bill 2016CP15-05 – Insurance (Amendment) Bill 2016 consultation Consultation paper30 Sept 2015
Quantitative Impact Study 2CP15-06 – Launch of QIS2 for long term assurance Consultation paper etc2 Oct 2015
Quantitative Impact Study 2CP15-07 – Launch of QIS2 for non-life insurance Consultation paper etc30 Oct 2015
Group Supervision DP16-02 – Group supervision discussion paper and request for information Discussion paper29 April 2016
Conflicts of Interest – Life InsurersDP16-03 – Managing conflicts of interest in the insurance sales process (Long-term insurance)Consultation paper7 July 2016
Quantitative Impact Study 3 CP16-04 – Launch of QIS3 for non-life insuranceConsultation paper etc1 Sept 2016
Quantitative Impact Study 3 (life insurers) CP16-05 – Launch of QIS3 for life insuranceConsultation paper etc4 Oct 2016
Quantitative Impact Study 4 (life insurers)CP17-03/T04 – Launch of QIS4 for life insuranceConsultation paper etc7 April 2017
Insurance (Amendment) Bill 2016 CP16-06 – 2nd consultation Consultation paper 30 Sept 2016
Insurance IntermediariesDP16-07 – General insurance intermediation Discussion paper28 Oct 2016
Conduct of Business (non-life insurance)CP17-01-T01 – Conduct of Business Requirements for non-life insurance businessConsultation31 Jan 2017
Insurance (Conduct of Business) (Long Term Business Code)CP17-05/T06 – Conduct of Business Code for life insurance businessConsultation5 May 2017

Interested stakeholders are recommended to subscribe to the Authority’s RSS feed, to ensure that news relevant to the ICP project is received promptly. To subscribe, follow this link and click on the RSS orange button for IOMFSA News at the foot of the News Page.

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Downloadable Documents
Acrobat PDF FileRoadmap 2017 (645 kb)
Format:Acrobat PDF File
Roadmap 2017