During such a difficult period for businesses globally, it is gratifying to see that the Isle of Man’s captive insurance industry is in great health. This is, in part, thanks to the global commercial insurance markets where hardening rates are driving the flight towards alternative risk management structures. But the quality and resilience of the Isle of Man’s financial services industry is playing a major role too.
Simon Pickering, Head of Insurance & Pensions, Finance Isle of Man, explains: “We are reaping the rewards of a financial services industry that has developed robust business continuity programmes over many years. At the start of the pandemic, this facilitated a seamless transition into remote working practices which, for the captive industry, was particularly important as it coincided with an exponential rise in demand. Key stakeholders in the captive ecosystem – clients, insurance managers, professional services and regulator – retained the interconnectivity that is essential to the solution. The industry’s infrastructure has undoubtedly been tested and we are immensely proud of the results”. And, as he pointed out: “Our businesses are able to switch quickly between home and office working according to the ever-fluctuating state of the pandemic at any time. We have been the envy of the world for much of the crisis so far, with normal office working available for most of that time. This is not down to good fortune but as a direct result of effective government policy”.
Entering 2021, the Isle of Man is looking to capitalize on the buoyant market conditions for captives. Pickering continues: “We have been working collaboratively with the Isle of Man Captive Association and our financial regulator over recent months to develop a fresh, engaging and and strong marketing package, which will re-inforce our Island’s eminence in all things insurance-related. The regulated insurance sector is the largest on the Island and we are keen to build from this position of strength and, in particular, highlight what a strong proposition we have for captive insurance solutions. The public and private sectors working in tandem like this is a real strength of the Isle of Man and we are excited about enhancing the message over the coming weeks and months.”
Whilst general market conditions are undoubtedly playing their part in a resurgent captive industry, Pickering believes that it is the overall strength in the Isle of Man proposition that is attracting new business: “Corporate customers demand high levels of governance and service and that is what our captive industry provides in droves – from a modern, flexible legal infrastructure to gold-standard regulation to high quality insurance managers, banking institutions and professional services. I am always highly impressed by how this community works so collaboratively and seamlessly and, in doing so, provides the levels of comfort around governance and service that captive insurance users require.”