The Isle of Man Financial Services Authority (FSA) has launched a consultation on proposed updates to the Insurance Regulations 2025. The revisions refine earlier proposals and clarify requirements for captive insurers (Class 12) and fully funded insurers (Class 13). New measures include processes for protected cell companies (PCCs) facing capital breaches and default fees for specific insurers to streamline fee decisions. The updates give the FSA a new remedy to address capital breaches in PCCs, allowing the authority to petition for the receivership of individual cells instead of winding up the entire PCC structure. In addition, the proposals update qualifying criteria for captives, making them easier to use and adapt while establishing new default admission controls for fully funded insurers to help ensure that complex or long-tail businesses must obtain the authority’s approval to apply for Class 13 authorisation. The deadline for feedback is 7 February 2025.
