Simon Pickering, head of insurance and pensions at Finance Isle of Man, explains how his company is taking a captive approach
In a multinational era, in which the geographical boundaries of businesses are increasingly blurred, demand for a sophisticated and flexible approach to employee benefits is growing. Companies are seeking to consolidate their benefits provisions across diverse markets and jurisdictions, harmonising them into one coherent and efficient system. A captive approach to employee benefits is fast emerging as an effective answer to these demands. As a jurisdiction renowned for its captive and general insurance expertise, the Isle of Man stands ready to meet this challenge head-on, leading the way in providing a competitive captive solution for employers around the world.
The international employee benefits landscape has long been lacking a unified hub, particularly for multinational corporations that have a globally spread workforce. It is here that the Isle of Man is stepping up – last year a new branch of the International Employee Benefits Association was launched and we are in the process of creating an economic cluster, ‘Employee Benefits Isle of Man’.
This is part of a sustained initiative aimed at harnessing the diverse range of employee benefits expertise available in the Isle of Man, creating a comprehensive one-stop shop for multinational companies.
The benefits of taking a captive approach to employee benefits provision are numerous, particularly when it comes to flexibility. This approach enables companies to tailor their insured benefits packages to cater to the diverse needs of employees spread across different markets and jurisdictions. More than just providing customisation, an effective employee benefits captive can deliver commercial benefits for the employer company, firstly by converting insurance expenditure into a potential profit centre. And secondly, for businesses with existing property and casualty captives, the more stable nature of insured protection benefits for employees can also contribute positively to solvency and capital efficiency.
The Isle of Man stands out as the ideal choice for captives, thanks to its unique blend of attributes. Its status as a financially stable and well-regulated jurisdiction, paired with well-established financial services and insurance sectors, provides a strong foundation. This is complemented by the presence of leading law firms and a highly skilled workforce. Additionally, a straightforward licensing model and a supportive, pro-business government bolster its appeal.
Looking forward, we aim to make the Isle of Man the preferred choice for multinational companies offering employee benefits.
This ambition is supported by our vast experience in captive insurance, and our ability to interact with other employee benefit services and expertise available on the island – from global employment companies to international pension companies and providers of employee incentive plans.
We stand on the cusp of a new era in the delivery of employee benefits, and the Isle of Man is excited to be leading the way. As we continue our journey, we look forward to reaching new milestones and solidifying our position as a world-leading hub for the captive approach to employee benefits.
