The source told International Adviser that the code would also call on firms to only do business with licensed intermediaries.
The source said the proposals had been made by the island’s Financial Services Authority (FSA), which is seeking to bring its insurance regime into line with the code of conduct issued by the International Association of Insurance Supervisors (IAIS).
The FSA consulted the IoM’s insurance firms between July and September last year. It is now planning meetings with the firms to discuss their feedback.
No business changes
Gillian Marples, chair of the Manx Insurance Association, said she had no knowledge of any clauses governing licensed regions or intermediaries.
However, she added that any code was unlikely to require changes to where Isle of Man insurers can write business, as long as they complied with their regulatory obligations.
“The requirements of the new code will be developed to recognise that the business model for the majority of Isle of Man insurers is to work through intermediaries,” Marples said.
“It is expected that it will look at the vetting and monitoring of advisers, and the quality of the information and disclosures provided to the end policyholders.
“It will also look at what products are accessed and the types of assets being held within those products. Those are the main themes,” she said.
Fair treatment
Marples added that the IAIS rules on treating customers fairly would be a major part of the island’s revised code of conduct, but it would likely leave the responsibility for providing the correct information and guidance to investors with advisers.
At most, Marples said, the code could include a key information document, receipt of which policyholders may be required to confirm. She added the code will be designed to apply worldwide wherever an Isle of Man-based insurer had issued a contract.
The next stage for the implementation of the new code is for the FSA to hold further talks with the island’s insurers to discuss feedback to the consultation, whichis expected to place in coming weeks.
