The Isle of Man may be the first Crown Dependency to introduce a ‘Code of Conduct’ for Insurance providers on the Island.

The consultation, issued by the Isle of Man Financial Services Authority (IOMFSA), sets out a number of proposals for developing the Island’s existing regulatory framework in order to enhance the fair treatment of policyholders by ensuring that any conflicts of interest that arise during the insurance sales process are disclosed and thereby mitigated.

Leonard Singer MHK, Member at the Department of Economic Development with responsibility for Financial Services, commented:

‘This is a positive step for the Island’s successful insurance sector. The Isle of Man is a key international partner in the insurance field and is well known for its regulation and innovation. The Code is not designed to make insurers responsible for advisors or the distribution process but it does look to ensure that the advisors from whom insurers accept business are reputable.’

Gillian Marples, Chairperson of the Manx Insurance Association (MIA), commented:

‘The direction of global regulatory travel is clear. Ultimately all forward looking, reputable jurisdictions will have to develop regulations that are focused on the fair treatment of customers. The MIA recognises the need for an insurance regulatory framework which meets relevant international standards but which is also sufficiently proportionate to allow our members to continue to attract business.

‘The MIA will feedback industry comments on the Code to the IOMFSA and will discuss appropriate implementation periods for any new regulations to allow members and advisers time in which to prepare for any changes.’

The consultation, ‘Managing Conflicts of Interest in the Insurance Sales Process (Long-term business) builds on the draft ‘Conduct of Business Code (Long Term insurers)’ issued by the Isle of Man Financial Services Authority in 2015. The new consultation is open for comment until 2nd September 2016.

Please visit http://www.iomfsa.im/ConsultationDetail.gov?id=580 to submit your comments.

- Ends -