The Isle of Man has issued a consultation to introduce a code of conduct for insurance providers on the island.
The consultation, issued by the Isle of Man Financial Services Authority (IOMFSA), provides a number of proposals for developing the island’s existing regulatory framework.
It sets out 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, a 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), added: “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.”
MIA will provide industry comment feedback to IOMFSA and discuss appropriate implementation periods for any new regulations to allow members and advisers time in which to prepare for any changes, according to Marples.
The consultation paper is open for comment until 02 September 2016.
