About the IPA

Regulation of Insurance & Pensions Business

The IPA was originally established as the Insurance Authority in 1986, and became the IPA in January 1997 following the addition to its responsibilities of the development and implementation of a supervisory framework for pensions schemes. It is a statutory board established under the Insurance Act 1986 (as amended in this regard by the Retirement Benefits Schemes Act 2000 and the Insurance [Amendment] Act 2004) and has responsibility for the regulation of the insurance and pensions sector in the Isle of Man.

The development of the insurance and pensions sector arose from the Government's decision in the early nineteen-eighties to seek to encourage diversification in the finance sector. The importance to the Island of attracting only high quality business resulted in the creation of the IPA to regulate the sector. The Authority seeks to ensure, through the exercise of its powers, that the regulatory framework for insurance and pensions business in the Island adheres to the highest standards. It sees the maintenance of an environment that is attractive to high quality business as an important part of its work.

The IPA is responsible for:

• Authorisation and ongoing supervision of Isle of Man companies carrying on insurance business in or from the Isle of Man and for companies incorporated elsewhere which carry on insurance business here
• Registration of general insurance intermediaries carrying on business in or from the Isle of Man
• Regulation of pension schemes and those persons who conduct and administer pensions business on the Island
• Administration of the Island’s statutory policyholders’ compensation scheme for life assurance companies, in its position as designated scheme manager

The ultimate goal of the Authority is to ensure that companies based on the Island, and their clients, have the confidence that they are transacting business in a high quality, secure and well regulated centre, which has the expertise and capacity to cater for their needs both now and in the future.

Our Mission Statement

The IPA exists to maintain and develop an effective regulatory framework for insurance and pension business which will:-

• Provide security for investors
• Prevent and deter the Isle of Man being used for the purposes of financial crime
• Preserve the International Reputation of the Isle of Man
• Ensure a flourishing environment for Isle of Man business

Our Objectives

• To ensure that the Authority's policies are up to date and timeously implemented
• To resource the Authority with staff of high quality, integrity and experience
• To maintain high standards in the authorisation, supervision and good conduct of insurance business
• To maintain a cost-effective support system which, appropriate to needs, is sufficient to support the regulatory and other responsibilities of the authority
• Without compromising regulatory impartiality, to safeguard the Authority's and the Island's image

Governance

The Authority is committed to operating and maintaining effective procedures and policies supporting all aspects of sound corporate governance. The Authority is required to comply with the provisions of the Corporate Governance Principles and Code of Conduct which came into effect for all Departments, Boards and Offices of the Isle of Man Government as from 1st April 2006. In the interests of ensuring the proper and effective operation of the Authority, the code requires there to be in place a clear framework governing that activity ensuring that:

• Decisions are taken properly
• Channels of communication are open
• Performance is monitored
• Standards are upheld

Corporate governance is a broad concept and aims to encompass the structures and processes governing all of the activity of the Insurance and Pensions Authority including aspects relating to its risk management and internal control and its focus on the needs of all of its stakeholders.

As part of its strategy for maintaining high standards of corporate governance the Authority will continue to consult with all stakeholders on matters of regulatory or legislative developments and will continue to foster an environment in which open and constructive dialogue with relevant industry organisations is conducted to the greatest possible extent.

The Authority undertakes periodic reviews of its risk profile and is required to provide an annual Statement of Internal Control to support the findings of its internal control assessment procedures. The effectiveness of the internal control environment is periodically tested to ensure that the Authority addresses any threats it may face in the performance of its strategic objectives.

Useful Documents

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