Isle of Man Finance

Andrew Smith, Business Development Manager, Insurance and Pensions, Isle of Man Finance Isle of Man Finance 2nd Floor, Illiam Dhone House Circular Road Douglas Isle of Man IM1 1PG email: andrew.smith@gov.im telephone: 686400

The Isle of Man is considered to be one of the world’s leading offshore insurance jurisdictions, with a reputation for quality and innovation. The sector has been established on the Island for over thirty years during which time its life and captive sectors have shown very strong growth and a diverse range of other insurance related companies, such as insurance managers and independent consultants and brokers have been established to complement the market. The comparatively recent emergence of the international pensions sector has also served to augment the sector, with strong growth being achieved.

There are many reasons why the Isle of Man has proven to be an ideal location for insurance and pensions business including the Island’s long political history and stability, pragmatic yet robust legislation and regulatory policies, a proactive Regulator and robust Policy Holder Protection for long term business. An experienced, available labour force and favourable operational costs, in addition to an attractive underlying fiscal environment have also undoubtedly been key contributing factors.

The Life Assurance industry has enjoyed exceptional growth in recent years both in terms of premium income and in overseas market penetration. Premium income grew by 70% during 2005 and by a further 40% in 2006. Funds under management reached in excess of £32 billion in 2006 with premium income over £9 billion. Recent years have also seen a marked growth in the establishment, by Isle of Man life assurers, of new branch operations in overseas territories. Alongside this, the range of markets open to the sector has expanded following the granting of a number of product licences in other jurisdictions.

Similarly since the introduction of the Retirement Benefits Schemes Act 2000 and the Retirement Benefits (International Schemes) Regulations 2001 the number of International Pension Schemes has grown strongly and now includes many large multinational names.

The Island has a strong, well established, captive sector which has been a leading player in the global market for many years. The international captive market is well represented on the Isle of Man, with many major captive managers having a significant presence on the Island. Working with the Manx Insurance Managers Association (MIMA), these companies and other supporting industries have recently undertaken a strategic review of the sector. An agreed strategy is now in place to take the sector to new levels.

With its pragmatic, responsive and appropriate regulatory framework, established professional workforce and fail-safe leading-edge communications infrastructure, the Isle of Man unquestionably offers that “Freedom to Flourish.”