IoM Consults On Code Of Conduct For Insurance Companies
by Jason Gorringe, Lowtax.net, London
15 August, 2016
The Isle of Man Financial Services Authority has launched a consultation on the introduction of a "Code of Conduct" for insurance providers on the island.
The purpose of the Code is to enhance the fair treatment of policyholders by ensuring that any conflicts of interest that arise during the insurance sales process are disclosed and thereby mitigated.
Leonard Singer, Member at the Department of Economic Development with responsibility for Financial Services, commented: "This is a positive step for the island's successful insurance sector. The Isle of Man is a key international partner in the insurance field and is well known for its regulation and innovation. The Code is not designed to make insurers responsible for advisors or the distribution process but it does look to ensure that the advisors from whom insurers accept business are reputable."
Gillian Marples, Chairperson of the Manx Insurance Association (MIA), commented: "The direction of global regulatory travel is clear. Ultimately all forward-looking, reputable jurisdictions will have to develop regulations that are focused on the fair treatment of customers. The MIA recognises the need for an insurance regulatory framework that meets relevant international standards but that is also sufficiently proportionate to allow our members to continue to attract business."
"The MIA will feedback industry comments on the Code to the Isle of Man Financial Services Authority and will discuss appropriate implementation periods for any new regulations to allow members and advisers time in which to prepare for any changes."
The new consultation is open for comment until September 2, 2016.
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