The Isle of Man Financial Services Authority is inviting feedback on proposed updates to its Insurance Regulations 2025.
Under the Insurance Act 2008, before making the proposed regulations, the Authority is required to consult with the Treasury and other organisations and persons that are likely to be affected by the proposed regulations.
The closing date for comments is 7 February 2025.
“Broadly, the revised wording in Schedule 1 is shorter, wider in scope, easier to use, easier to adapt and more actively ensures that class 12 reinsurance remains captive in nature,” the consultation paper states.
The Authority has discussed these proposals pre-consultation with the Isle of Man Captive Association.
The revisions include changes to some of the wording previously consulted on, updated requirements in respect of captive insurers (class 12) and fully funded insurers (class 13).
Class 12 has been recategorised as “captive” (formerly “restricted”).
The proposed revisions also include newly specified regulation for cells and default fees for certain insurers in lieu of the Authority exercising its discretion to vary those fees.
For cells which have an unresolved breach to their minimum capital requirement, the Authority is proposing a newly specified alternative remedy that will offer a different option to petitioning for the winding up of the entire PCC.