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framework for insurance business in a way that
is both appropriate and proportionate to the
Island’s insurance sector and consistent with
relevant international standards. This is for the
purpose of maintaining the Island’s reputation
as a well-regulated and responsible international
financial centre.
The updated framework will be implemented by
a combination of changes to the enabling powers
in the IA08 and by the implementation of new and
amended secondary legislation.
The key areas of change are as follows:
•
the development of a more
sophisticated risk-based capital and
solvency regime
•
the introduction of a group supervision
framework
•
enhanced conduct of business requirements
•
enhanced governance and enterprise
risk management requirements
•
enhanced requirements in respect of
general insurance intermediation
•
the introduction of public disclosure
requirements where appropriate
•
enhanced regulatory reporting.
The Authority continues to work closely with the
Island’s insurance sector and other interested
parties throughout the project by way of detailed
pre-consultation discussions, quantitative
impact studies, formal consultations, update
communications and such other means as
appear appropriate. The project is now in its
implementation phase and it is expected that this
level of engagement will continue and increase
as the Authority and industry work towards
finalising all legislation and arrangements for
implementation.
The Authority’s formal report on the project is
contained in the “Roadmap for updating the Isle of
Man’s regulatory framework for insurance business”
which has been published annually since 2013,
the latest update having been issued at the end
of January 2017. As well as providing information
about the project, the Roadmap reviews progress
over the previous period and looks forward to
developments over the forthcoming year.
INTERNAT IONAL
POL ICY MATTERS
The Authority maintains a close watch of
international matters, including evolving
international standards, as well as following
closely the global initiatives being taken to ensure
a more robust international response to future
financial stability issues, and the prevention and
detection of money laundering and the financing
of terrorism.
Over the period of this report an important matter
of focus has been on the implications for the Isle of
Man, and specifically regulated entities, resulting
from the UK’s decision to leave the EU. Some
implications may be significant, and the Authority
will be prepared for this, but importantly, the Isle
of Man is already a ‘third country’ for EU purposes.
Therefore it is hoped that any negative effects of
‘Brexit’ on regulated entities will be few in number,
and that positive implications can be leveraged.
CONSULTAT ION
Appendix H lists the consultative documents issued
over the period of this Annual Report. Responses
from interested parties to consultations are
invaluable, and the Authority appreciates the input
of all respondents.
Isle of Man Financial Services Authority Annual Report 2016/17 • 25