The Life Assurance Sector
The Isle of Man has probably the largest offshore life assurance sector. The Island's effective regulatory regime makes it attractive to high quality business, and this has helped it to develop into one of the worlds leading centres for offshore life assurance. It is home to the international subsidiaries of highly respected life assurance companies, which attract business from all around the world. An indication of how successful the Island is at attracting new Life business is given by the total funds under management for the sector. For the year ended 31 December 2003 these totalled £17.2 billion, representing a compound annual growth rate of 14% over the last five years.
The Isle of Man, with its wealth of experience in the international financial services sector, has exceptional qualifications in the field of life assurance. Furthermore the Island has a highly trained workforce with experience of the international life insurance market, its products and administration requirements. Its people are responsive to the needs of this demanding market and provide the high levels of service required. Specialists in their respective fields are also on hand to assist new and existing businesses.
All life assurance companies based in the Isle of Man which trade internationally may apply for exemption from Income Tax (i.e. Corporation Tax) under the Income Tax (Exempt Insurance Companies) Act 1981. Under the terms of an extra statutory concession, a zero rate of income tax is also available to life assurance companies.
The life assurance companies based on the Island are leaders in the development and distribution of some of the most innovative life assurance products to be found. They are ready to meet the changing demands of an international market. It is this expertise that attracts highly respected corporations to set up their insurance subsidiaries in the Isle of Man.
One of the key drivers behind the growth in life business on the Island is the security afforded to policyholders by the Policyholders Protection Scheme. In the event of a default, the scheme offers compensation to policyholders of up to 90% of amounts due to them, funded by a levy on all life insurance companies operating on the Island. Unlike many other policyholder protection schemes, the Island's system operates globally, covering investors no matter where they reside. For further information see the Life Insurance (Compensation of Policyholders) Regulations 1991.
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