The Isle of Man Financial Services Authority has updated its Guidance Notes and Information Concerning the Insurance Regulations 2025 and the Corporate Governance Code of Practice for Insurers 2021, introducing targeted refinements to the class 12 (captive insurance) framework. The update amends paragraph 3.2 so it no longer prohibits contractual provisions that might be used for non-class 12 purposes, but instead clarifies that such provisions must not be used for non-class 12 business purposes, with the stated intent of prohibiting actual non-compliance rather than potential non-compliance. New paragraphs 3.5 to 3.7 address paragraph 2(5) of Schedule 1 to the Insurance Regulations 2025 by specifically providing for reinsurance, adding explanatory guidance via an example, and introducing a new class 12 qualifying criterion allowing insurance of individual and legal entity shareholders of own group members where the insurance relates to their role as a shareholder (or equivalent) of an own group member. The former paragraph 3.5 on the content of the class 12 Summary ORSA has been renumbered as paragraph 3.8.

Original source View in tracker