The Isle of Man Financial Services Authority has opened a consultation on proposed updates to insurance sector capital requirements for class 12 captive insurers and class 13 insurance special purpose vehicles. The package would introduce a simplified solvency capital requirement framework for class 12 firms and make related amendments to valuation, solvency and corporate governance rules. The consultation covers the draft Insurance (Class 12 and 13 Valuation and Solvency) Regulations 2026, Insurance (Valuation, Solvency and Miscellaneous) (Amendment) Regulations 2026, and Insurance (Corporate Governance) (Amendment) Guidance Notes 2026. For class 13 firms, the proposals would transpose, with amendments, the minimum capital requirement and solvency capital requirement framework from Schedule 2 of the Insurance Regulations 2025. The Authority said the current and possible future updates are intended to support a proportionate and adaptable approach in a competitive international insurance market. Responses to Consultation Paper CP26-01 are due by 13 July 2026.