Isle of Man alters captive regulation

The Isle of Man has announced improvements to its captive insurance industry regulation and its future growth plans at a seminar hosted by The Manx Insurance Managers Association (MIMA).

At the on-Island seminar, co-sponsored by Barclays Wealth and London & Capital Asset Management, MIMA chairman Derek Patience unveiled changes to Isle of Man regulations designed to secure the long term success of the sector by broadening the range of investment options available to captive owners.

The proposed changes will allow inter-company loans from a captive to be fully admissible when calculating the captive’s solvency margin and permit new forms of regulatory capital, subject to the approval of the Isle of Man Insurance Supervisor. These changes will come into effect from the beginning of December.

“The implementation of this strategy will reaffirm the Island’s very strong position to challenge competitor jurisdictions and allow the Isle of Man to be recognised as the domicile of choice.

John Spellman, Isle of Man Finance

Companies including BAE Systems, Millea Holdings, Keller Group and Vaultex UK (a Barclays and HSBC joint venture) have formed Isle of Man captives in 2007.

John Spellman, Isle of Man Finance commented: ‘It is great news, MIMA and the Island’s Government have responded to some of the recommendations identified in the recent ‘Bennet Report’. From this strategic review an ambitious strategy to enhance the Isle of Man’s captive insurance offering is being successfully developed. The implementation of this strategy will reaffirm the Island’s very strong position to challenge competitor jurisdictions and allow the Isle of Man to be recognised as the domicile of choice.’