The Isle of Man’s ability to access the UK market for long-term insurance business is unaffected by Brexit.
Not only is that good news for the 13 leading life companies that are already located here, and for those wishing to relocate to the Island, it is also the latest example of our ability to steer a steady course during times of change and challenge.
Of course, because of the Isle of Man’s position as an international business centre with close links to the UK, it’s understandable that Brexit has prompted questions about the potential impact on our life sector. So we asked Simon Pickering (Head of Insurance & Pensions at Isle of Man Government’s Department for Enterprise) to explain why we still have a very strong proposition for life companies in the post-Brexit era.
“The most important point to note,” he says, “is the fact that the Isle of Man’s ability to access the UK market for long-term insurance business is unaffected, and the Island’s long-standing relationship with the UK continues. We still offer a route into the UK for insurance companies that are currently based in the EEA. In addition, Isle of Man Government continues to provide very attractive grants and financial assistance for starting, growing, and developing businesses here. Finance Isle of Man – which is an executive agency of the Department for Enterprise – has been working closely with the regulator (Isle of Man Financial Services Authority) to provide a clear road-map for UK access opportunities. That builds on the Island’s long record of offering a robust but practical regulatory framework which has been, and will continue to be, one of our strongest USPs.”
The Isle of Man now offers two options to suit how businesses wish to operate in the post-Brexit market. The ‘Branch’ option enables businesses to service existing UK customers, and the ‘Subsidiary’ option allows new business to be written into the UK. Businesses can choose one or both of those options. Branch operations can be established to service existing policies, and new companies can be established to service future policies. You don’t need to replicate your entire home operation in the Isle of Man – but there must be an Isle of Man CEO and control must be exercised from here too, but many back office operations can be serviced through existing infrastructure.
As you can see, the Isle of Man has once again successfully negotiated a safe path through major changes in the economic and political landscape – just as we have done for the past four decades, and as we will do moving forward as an award-winning global financial centre.
Click here to watch a video of Simon Pickering explaining more about why Isle of Man Government and the Department for Enterprise are so committed to supporting the life sector.