Guidance Notes and Information Concerning Insurance Management

Version 01 Issued on 16 February 2026 Guidance Notes and Information Concerning Insurance Management Published by the Isle of Man Financial Services Authority under section 34 of the Insurance Act 2008 to come into operation on 16 February 2026 INFORMATION In this document, where the Isle of Man Financial Services Authority indicates that it has exercised a power, this is not guidance but is information confirming that the power has been exercised as stated. STATUS OF THIS GUIDANCE The Authority issues guidance for various purposes including to illustrate best practice, to assist regulated entities (in this case authorised insurers and registered insurance managers (as applicable)) to comply with legislation and to provide examples or illustrations. Guidance is, by its nature, not law, however it is persuasive. Where a person follows guidance this would tend to indicate compliance with the legislative provisions, and vice versa.

Isle of Man Financial Services Authority Version 01 Page 2 of 5 Issued on 16 February 2026 Contents

1. Interpretation and references ........................................................................................... 3
2. Introduction ....................................................................................................................... 3
3. Nature and location of insurance business activities ........................................................ 4
4. Management of an authorised insurer .............................................................................. 4
5. Provision of Management Services ................................................................................... 4
6. Insurance Business ............................................................................................................. 5

Isle of Man Financial Services Authority Version 01 Page 3 of 5 Issued on 16 February 2026 Date of Change Summary of Change 16/02/2026 Guidance note was first published

1. Interpretation and references (1) In this document — “the Act” means the Insurance Act 2008; “the Authority” means the Isle of Man Financial Services Authority; “Authorised Insurer” is as defined in Section 5 of the Act and includes an authorised insurer and an insurer who is a holder of a permit under Section 22 (foreign insurers); “insurance business” is as defined under the Act; “insurance manager” is as defined under the Act; “management services”, means any activities carried on by a registered insurance manager in its role as an insurance manager and can include insurance business activities; “non-authorised insurer” means an insurer that is not an Authorised Insurer (and as such has no presence on the Island); “registered insurance manager” is an insurance manager that has been registered by the Authority under Section 25 of the Act.
2. Introduction (1) This guidance is published under Section 34 of the Insurance Act 2008 and is relevant to Authorised Insurers and registered insurance managers. It is also of relevance to non-authorised insurers that employ the services of a registered insurance manager. (2) This guidance note is not applicable to insurance managers who are exempt from registration under Section 23(1)(b) of the Act. (3) This guidance sets out information on how management services can be provided to Authorised Insurers and non-authorised insurers that employ the services of a registered insurance manager.

Isle of Man Financial Services Authority Version 01 Page 4 of 5 Issued on 16 February 2026 3. Nature and location of insurance business activities Where an insurer’s insurance business is: a. ultimately controlled from; and/or b. substantially carried out in or from the Isle of Man, either by the insurer or an insurance manager; then, the insurer must be authorised in the Isle of Man (i.e. be an Authorised Insurer) and the insurance manager should be registered in the Isle of Man. 4. Management of an authorised insurer (1) Under Section 17 of the Act, an Authorised Insurer is required to have an appropriate level of management in the Island (be “self-managed”); or appoint a registered insurance manager in the Island. In both cases, the management of the insurer is required to have adequate knowledge and experience of the insurance business being carried on. (2) Where a registered insurance manager provides management services to multiple insurers that are part of the same group as the insurance manager, the insurance manager is not deemed to be a commercial insurance manager. (3) Where a registered insurance manager provides management services to multiple insurers that are not part of the same group as the insurance manager, the manager is deemed to be a commercial insurance manager. 5. Provision of Management Services (1) Under Section 23(2)(a) of the Act, a registered insurance manager shall not carry on any activities, in the Island or elsewhere, otherwise than in connection with or for the purpose of that person’s business as an insurance manager. (2) Therefore, a registered insurance manager must only provide management services that are in connection with its business as an insurance manager. (3) The Act defines an insurance manager as a person who provides management services for one or more insurers. Hence a registered insurance manager can provide management services to both Authorised Insurers and non-authorised insurers and can provide management services to multiple insurers within an insurance group. A registered insurance manager should not be providing management services to entities other than insurers.

Isle of Man Financial Services Authority Version 01 Page 5 of 5 Issued on 16 February 2026 6. Insurance Business (1) Management services that are classified as insurance business under the Act can only be carried on by registered insurance managers on behalf of Authorised Insurers. (2) Registered insurance managers can provide management services to non-authorised insurers, provided those services do not include insurance business activity. If a non￾authorised insurer1 requires a registered insurance manager to carry on insurance business on its behalf, then the non-authorised insurer should approach the Authority about becoming authorised (i.e. becoming the holder of a permit in the Island). (3) Registered insurance managers should clearly identify and monitor the activities they provide to non-authorised insurers to ensure the requirements of paragraph (2) are met. 1 For insurers that are exempt from holding a permit under Regulation 12(d) of the Insurance Regulations 2025, the employment of a registered insurance manager to provide insurance business activities constitutes having a fixed place of business on the Island and the exemption would no longer apply.