In the race towards greater regulation and the codification of requirements to treat customers fairly, the general perception is that the Isle of Man life sector was lapped some time ago. Now, however, the imminent introduction of the Insurance (Conduct of Business) (Long Term Business) Code 2017 means that – by the end of the year – the sector will have aligned their legislation with levels set by the UK; soon it may even be nudging ahead. Unfortunately, this is a race with no finishing line and probably no winners.

The draft Code published by the Isle of Man Financial Services Authority (IOMFSA) in May is expressed to constitute a “final consultation”. In reality, we can expect the Code to be enacted in materially identical terms. Therefore many offshore life companies face a tough timetable to introduce significant changes in their internal governance and customer processes. Those businesses that are not already well advanced in implementing the associated culture change will find that this compounds the challenge.

The Code enshrines a “treating customers fairly” requirement, as well as more specific and prescriptive conduct of business obligations. The key areas when the Code bites are as follows:

Policyholder onboarding: pre-contract disclosure, cancellation rights and ongoing disclosure

Broker relationships: prescriptive terms of business requirements and ongoing monitoring

Governance: obligations to treat policyholders fairly and specific requirements for market suitability assessments in the design of products and associated distribution plans

Click the icon below to read more on these key areas.

PDF Version

Share
Twitter LinkedIn Email Save as PDF
More Publications
15 Nov 2022

Insurance and reinsurance in the Isle of Man: Overview

A Q&A guide to insurance and reinsurance in the Isle of Man. Reproduced from Practical Law with the ...

3 Nov 2022

Significant Judgment for Isle of Man Fund Managers

A rethink of exclusion clauses in fund agreements may be needed after the Isle of Man’s appeal cou...

Contributors: Garry Manley
25 Oct 2022

An update to Isle of Man Trust Law

In the week that the Trust and Trustees Bill 2022 goes for its second reading (25 October 2022), it ...

27 Sep 2022

Similar but Different

While the basic features of the trust remain, there are some notable differences in how trusts can b...

25 Jul 2022

Balancing Regulatory and Data Protection Compliance

This article considers data protection compliance in the context of financial services regulatory co...

Contributors: Claire Milne WS
30 Jun 2022

Getting into the Weeds: Isle of Man Regulation of Global Cannabis Investments

The global cannabis industry has grown rapidly in recent years as a number of jurisdictions have lib...

Contributors: Sophie Corkish
24 Feb 2022

Welcoming Fintech Innovation in the Isle of Man

The Isle of Man Financial Services Authority (IOMFSA) has published online support for fintech innov...

25 Nov 2021

Regulatory Approach to ESG across the Crown Dependencies

New requirements may require investment products to display a label reflecting their sustainability ...

25 Nov 2021

The International Comparative Legal Guide to Gambling 2022 – Isle of Man Chapter

This chapter was first published in The International Comparative Legal Guide to: Gambling 2022, by ...

Contributors: Sophie Corkish
30 Jul 2021

Fighting international fraud

First published in New Law Journal, July 2021. Appleby partners Anthony William and Jared Dann an...

Contributors: Jared Dann, Claire Corkish