This paper sets out the IPA’s current thinking in respect of the assessment of the capital adequacy of an insurer undertaking long term insurance business, including the valuation of the assets and liabilities for solvency purposes. It is accompanied by the publication of the IPA’s Technical Specification detailing possible approaches to the valuation of long term insurance assets and liabilities and the assessment of capital adequacy of long term insurers using a “standard formula” approach.

This proposed technical specification accompanies the consultation paper on valuation and capital adequacy for long term insurance. It details possible approaches to the valuation of long term insurance assets and liabilities and the assessment of capital adequacy of long term insurers using a “standard formula” approach.

The technical specification will form the basis of the IPA’s first Quantitative Impact Study (“QIS1”). QIS1 will be launched in September 2014 and will require all life insurers to produce, on a best efforts basis, balance sheets and capital requirements using an approach reflecting the IPA’s initial proposals for the framework for valuation and capital adequacy for the new regulatory regime.

The Financial Services Ombudsman Scheme is an important provision which offers consumer protection to customers of Isle of Man financial institutions. The OFT is proposing to use its powers under the enabling legislation to extend the scope of the Scheme in regard to Self Invested Personal Pension Schemes or SIPPs and Insurance Intermediaries.

This paper sets out the IPA’s initial views on developing the Island’s existing regulatory framework in matters of conduct of business, taking into account developing international standards, including the IAIS ICPs.

The Insurance and Pensions Authority issues for consultation the draft Insurance Supplementary Fees Order 2014.
The draft Order prescribes the supplementary fee payable by insurance managers which act as manager for more than two insurers and those insurers which write class 1, 2 or 10 insurance business (‘long term insurers’).
A copy of the draft Order is available for download at the foot of this page together with the consultation document and comments are invited from interested parties on or before 15 August 2014.