Some life companies on the Isle of Man have privately expressed concerns about the broad commission disclosure deadline of 1 January 2018 and policyholder specific disclosure from 1 January 2019.
This is accentuated by current uncertainty around the UAE Insurance Authority’s plan to issue a new draft and open a fresh consultation on plans to tackle high fees and hidden commissions in the life industry after requests for a ‘two-year delay’.
Karen Badgerow, chief executive of the Isle of Man Financial Services Authority (IoMFSA), told International Adviser that the multi-jurisdictional complexity of international cross border distribution and varying pace of adoption of international standards by individual jurisdictions made it inevitable that some markets would be behind with their local regulations.
“We are unable to control whether the new framework will result in a ‘level playing field’ in all situations. In such circumstances, we have recognised the need to build appropriate transitional provisions into the scope and timing of implementation of any new measures, and this will continue to be a key consideration.
“The aim is to give an appropriate transition to allow insurers to develop business models over time to address change.”
The IoMFSA would “continue to meet with industry to understand their specific issues and how these might be addressed through such transitional arrangements”, Badgerow said.
She added that the IoMFSA will continue to contribute to discussions in developing standards in insurance regulation through the International Association of Insurance Supervisors and where appropriate through inter regulatory discussions with other recognised international regulators.
This ensured, where possible, that Isle of Man insurers would not be placed at a longer term commercial disadvantage with comparable insurance jurisdictions.
