The Isle of Man Government has launched new legislation in respect of Insurance Special Purpose Vehicle (ISPV) legislation which enhances the Island’s proposition for insurance business.
This new legislation is designed specifically to facilitate Insurance Linked Securities (ILS) and similar transactions including catastrophe bonds, mortality bonds, sidecars and industry loss warranties, as well as other collateralised reinsurance structures.
John Garland, Head of Corporate Financial Services with the Isle of Man Government’s Department of Economic Development, says: ‘We have been working and consulting closely with industry and the Insurance and Pensions Authority on introducing this legislation and already have enquiries in the pipeline. We believe that our framework for ISPVs offers excellent features for potential users as well as the proportionate and focused legislation that we are renowned for.
‘This new framework promises to open up new business streams for the Isle of Man and provide welcome competition in this area, particularly given our close proximity to London.
‘We can offer speed to market with the licensing process designed to take just five days following receipt of fully prepared applications. We can also offer a highly competitive fee structure – that may be fixed for the lifetime of any ISPV with a determinable lifespan – along with simplified regulatory requirements, including returns.
‘I am confident that our framework will prove of great interest to potential users in this specialist area who want to place their business in a highly respected and responsible international finance centre with a long track record of attracting high quality insurance business from around the world.’
Simon Nicholas, Partner, KPMG Isle of Man and Deputy Chair of the Isle of Man Captive Association says: ‘ILS is a very exciting and fast evolving area of insurance and the Isle of Man legislation has been market tested by several global well respected players in the ILS market, including some of those who already have a presence on the Island. With a promising pipeline, we expect this to complement the Isle of Man’s already successful and diverse financial services industry.’