The Isle of Man has introduced new insurance special purpose vehicle (ISPV) Legislation which enhances the Island's already attractive insurance business offering. The legislation enables Isle of Man firms to facilitate insurance linked securities and similar transactions including catastrophe bonds.
John Garland, Head of Corporate Financial Services with the Isle of Man Government's Department of Economic Development said:
"We have been working and consulting closely with industry and the Insurance and Pensions Authority on introducing this legislation and already have enquiries in the pipeline. We believe that our framework for ISPVs offers excellent features for potential users as well as the proportionate and focused legislation that we are renowned for. This new framework promises to open up new business streams for the Isle of Man and provide welcome competition in this area, particularly given our close proximity to London."
John continued: "We can offer speed to market with the licensing process designed to take just 5 days following receipt of fully prepared applications. We can also offer a highly competitive fee structure – that may be fixed for the lifetime of any ISPV with a determinable lifespan - along with simplified regulatory requirements, including returns. I am confident that our framework will prove of great interest to potential users in this specialist area who want to place their business in a highly respected and responsible international finance centre with a long track record of attracting high quality insurance business from around the world."
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