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Isle of Man Insurance and Pensions Authority |
Date: 10 April 2001
The Insurance and Pensions Authority is pleased to announce, following upon Treasury discussions with the Authority and the Financial Supervision, that it has been decided not to merge the two institutions.
Contact:
Bill Hastings
Chief Executive
Isle of Man Insurance and Pensions Authority
HSBC House
Ridgeway Street
Douglas
Isle of Man
Telephone + 44 1624 646000
Fax +44 1624 646001
e-mail bill.hastings@ipa.gov.im
The Insurance and Pensions Authority is pleased to announce, following upon Treasury discussions with the Authority and the Financial Supervision, that it has been decided not to merge the two institutions.
Richard Corkill MHK, Treasury Minister
Richard Corkill, MHK, The Treasury Minister in confirming the Treasury's decision said:
"It is important to ensure that Governments keep their regulatory systems under review, to ensure that they continue to match the needs of their market. In so doing it must be acknowledged that there are important differences between countries. A solution relevant to one does not necessarily mean that such should be imposed upon another."
Norman Radcliffe MLC, Chairman of the IPA
Recalling the conclusion of the Council of Ministers in its response to the Edward's report that the existing regulatory regime is robust, receives many accolades and works very well, Norman Radcfliffe, MLC., Chairman of the Insurance and Pensions Authority welcomed the decision.
"The arguments in favour of a "super-regulator" are anything but clear. Not only in the Isle of Man, but also in the far corners of the world, the IPA enjoys in its field, a reputation that is second to none. The island's insurance business is unique. That it enjoys a regulator, which provides focus, has unquestionably been a catalyst to what the island now enjoys".
The Authority's most recent data reveals support for Mr Radcliffe's assertion. Annual premium income brought to the island by its insurance industry amounts to in excess of £4.5 billions. Furthermore, the funds invested by that industry are in the region of £16 billions, much of which is invested through other sectors of the island's financial services market place.
There can be no doubt as to the importance of the insurance industry to the island. It is burgeoning. It is dynamic. It is an industry that, increasingly so, is becoming a most significant contributor to the island's economy. It is set to grow further.
Bill Hastings, Chief Executive IPA
Bill Hastings, Chief Executive of the Authority, is clear in his mind. The Isle of Man, more so than ever before, is a player in an international environment for insurance. Consistent with that of Government, the Authority's policy is to preserve the international reputation of the Isle of Man by adhering to international regulatory standards; standards that are appropriate to that market.
"Retention of an independent regulatory body for insurance will not in any respect undermine the maintenance of the International Standards which, for insurance, the Authority sets out to maintain".
He said, and continued
"The Treasury's decision means, once and for all, that uncertainty is removed"
The decision to retain the IPA as its independent regulator has been welcomed by the industry. Lee Tyrer, Chairman of the Manx Insurance Association, reflecting upon the Treasury's decision, said:
"There can be no doubt that a major factor in the growth of the industry on the island has been due to the proactive role of the Insurance and Pensions Authority. The risk of dilution of this knowledge and experience by absorption into a "super regulator" has been avoided therefore. That is excellent news for the Isle of Man."
Jim Boyd, recently appointed to the Chair of the Isle of Man Captive Managers Association is equally pleased
"I am delighted at the Treasury's decision. As our regulator, the Authority is fully conversant with the technical aspects of our industry. I am confident that the Association, jointly with the IPA, will now be able to focus on developing further the Isle of Man as a centre of excellence for Captive insurance and other similar risk financing operations".
END