Manx Insurance Expert Cites Regulation As Key To Island's Popularity

by Robin Pilgrim, LawAndTax-News.com, London

23 July 2003

Speaking following his return from the sixth annual IBC wealth management conference in Bermuda, Isle of Man-based insurance expert, Nick Verardi suggested that the Island is well-respected internationally as a result of its highly regulated life insurance sector.

According to the Isle of Man Online, Mr Verardi, who is joint head of the commercial department at Dickinson Cruickshank & Co. explained that insurance is increasingly being seen as an effective tax planning vehicle for HNWI, which is where the Isle of Man's three-tier policyholder protection regulations come into their own.

'It's a major selling point for the Island,' he announced, continuing: 'In the current climate people are looking for a well regulated environment. Other issues, covered in the Insurance (Amendment) Bill 2003, are expected to further strengthen the Island's advantage in this regard.'

The three levels of policyholder protection, put in place partly as a response to the 1982 collapse of the Savings and Investment Bank (SIB), according to Mr Verardi, are

- A strong initial licensing test imposed by the Insurance and Pensions Authority;

- Compliance testing to ensure that adequate solvency levels are maintained, and that anti-money laundering obligations are fulfilled;

- Statutory protection in the form of the policyholders' compensation scheme, in the unlikely event of the collapse of the life insurance company.

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