With scrutiny coming from governments, regulators and the media, it’s increasingly important for international business centres to demonstrate strength, security and stability.
Located in the heart of the British Isles, the Isle of Man is renowned for its life insurance and wealth management sector. The Island’s financial services sector has won many awards for Best International Finance Centre and it is recognised by the International Monetary Fund as a well-regulated Finance Centre of Excellence. Here’s why advisers should recommend the Isle of Man.
Isle of Man for Strength
The Isle of Man is home to world-leading companies including Canada Life International, Friends Provident International, Hansard International, Integralife International, Old Mutual International, RL360, Utmost Wealth Solutions, and Zurich International Life. These companies work closely with the Manx Insurance Association (MIA), which promotes excellence and professionalism on the Isle of Man and provides a forum for the discussion and exchange of views. This ensures companies work together to strengthen the sector.
These businesses have always operated in global markets and therefore have a strong understanding of how they function. Additionally, some companies are known for solutions for the UK market which is especially useful for advisers catering for UK customers in the current political environment.
Isle of Man for Security
The Isle of Man’s life insurance and wealth management sector has been protecting customers for over four decades. We have a robust risk-based capital solvency regime designed to operate and meet their liabilities due to policyholders. The Island also has a Policyholders Compensation Fund, which in the event of a company being unable to meet its liabilities to policyholders, will pay a sum up to 90% of the amount of any liability to the policyholder.
The new Conduct of Business Code will be introduced on 1st January 2019 to further enhance consumer protection. The Code applies a range of principles to insurers’ business practices in order that policyholders continue to be treated fairly, including the requirement to provide new customers with standardised information including details of commissions and fees, in the form of a Key Information Document or a Summary Information Document from 1st July 2019. This move towards greater transparency will help advisers bolster relationships with their customers.
Isle of Man for Stability
For many years the Isle of Man has enjoyed political and economic stability even amidst uncertainty around the world. In fact, we have had three decades of sustained economic growth, which is an enviable track record. It’s not just our political and economic framework that is stable. Our life insurance and wealth management companies offer savings and investment products in currencies such as Sterling, Euro and US Dollar, which is particularly helpful for advisers recommending customers in regions like Latin America where there are concerns about the devaluation of local currencies.
Further endorsement of the Island’s status as a leading business centre comes through a series of independent industry awards. These include the International Finance Centre of the Year at the International Adviser Product and Service Awards in 2017 and Best International Finance Centre at the 19th International Investment Fund and Product Awards, which were held in 2018. The judges described the Island as a strong, credible jurisdiction with real focus on world class financial services and support for businesses.
Having this endorsement from the highly respected judges of independent industry awards makes the Island’s life insurance and wealth management sector a compelling choice for advisers.