IoM Updates Financial Reporting Rules For Insurers
by Jason Gorringe, Lowtax.net, London
18 March, 2016
The Isle of Man's Financial Services Authority (FSA) has responded to feedback received during a consultation on the draft Insurance (Supplementary Information) Regulations 2016, which became effective on March 15.
The draft regulations set out the required reports and information (the "supplementary information") required by section 14(4) of the Insurance Act 2008, required from insurers at the same time as they submit audited accounts.
The Authority received 16 responses to the consultation. According to the Authority, there was broad acceptance of the proposals from most respondents. However many also noted that it would have been helpful if the consultation had been issued earlier.
One insurer expressed disappointment that the regulations did not introduce a new solvency calculation based on either the new UK GAAP or IFRS, since the solvency regime would then be based upon the balance sheet prepared under the new GAAP rather than requiring insurers to prepare a separate balance sheet for regulatory purposes on a basis consistent with previous filings.
However, the Authority believes that, at this time, it would be inappropriate to accelerate that work to coincide with the GAAP changes as the framework is incomplete and quantitative impact studies are ongoing.
A few changes to the Regulations are set out in Consultation Response document CR 16-01, concerning regulatory financial statements and companies that only write contracts of insurance which qualify as insurance contracts for accounting purposes.
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