Thursday, September 15, 2011
Financial services providers and prospective captive insurers in the Isle of Man will benefit from new Incorporated Cell Companies (ICC) legislation being introduced by the Isle of Man government.
The Incorporated Cells Act 2010 and the Insurance (ICC) Regulations 2011 came into effect on June 23. At present, the use of ICCs is restricted to those carrying on insurance business, however, the provision exists within the Act for this to be extended in the future to include other types of business.
In an ICC structure, an entity is structured with incorporated cells, which are considered seperate entities from one another for legal purposes. These cells may hold assets, sue and be sued in their own name. As a result, there is legal ring-fencing within an ICC structure which provides a stronger degree of certainty and protection of the assets of other cells.
Commenting on the new legislation, Minister for Economic Development, Allan Bell said: "The introduction of this new legislation will reinforce the Isle of Manís reputation as a competitive jurisdiction for captive insurance, by allowing companies on the island to offer a wider range of options for captive insurance business."
Chairman of Isle of Man Captive Association, Gaynor Brough added: "The Isle of Man is a leading destination for discerning captive owners and is home to an impressive number of FT100 and FT250 companies. We are pleased to now be in a position to add ICC structures to our existing stable of innovative captive products."
David Vick, Chief Executive of the Insurance and Pensions Authority, noted: "An ICC structure offers a useful additional option for insurance and risk management programmes, there has been strong industry support for this move and we look forward to welcoming new companies who wish to take advantage of the ICC structure."