Guidance Note: Applications under the Insurance Business (Jersey) Law 1996

Summary

This is JFSC guidance explaining what supporting documentation must accompany applications for a Category A or Category B permit to carry on insurance business under the Insurance Business (Jersey) Law 1996. Category A permits apply to applicants already authorised by a regulator outside Jersey, while Category B permits apply to all other applicants, including captive insurers and special purpose vehicles such as transformer vehicles and insurance securitisation companies.

• Category A applications: Must be submitted on the required application form with the latest financial statements and auditor's report, the latest regulatory return (including solvency calculation) filed with the home regulator, written confirmation from the home supervisory authority under Article 7(2)(c) of the IB(J)L, and details of any significant contradictions between home jurisdiction requirements and the Insurance Codes or AML/CFT Handbook.
• Category A, EU home regulator: The JFSC will generally rely on the home regulator's fit and proper assessment and will not seek further related information except on an exceptions basis.
• Category A, non-EU home regulator: Applicants must provide the standard Category A information plus consider paragraph 3.5 of the Insurance Business Licensing Policy; early consultation with the JFSC is advised as Part 2 of that policy may apply in full.
• Category B applications: Must be submitted on the required application form with a five-year business plan, projected solvency calculations under the Insurance Business (Solvency Margin) (Jersey) Order 1996 for each of the five years, full details of proposed reinsurance arrangements, and completed Personal Questionnaires or Additional Appointments Forms for directors, shareholder controllers and key persons.
• Capitalisation policy for Category B: Financing should be sufficient to support the proposed business for the first five years and safely into year six, with a guideline minimum capital requirement of GBP 100,000, adjustable by the JFSC based on the nature of the business and financial projections.
• Application fees and renewal: A cheque for the application fee must accompany the formal application, and permits are renewable on 1 October each year.

Applicants are encouraged to review the JFSC's Insurance Business Licensing Policy, the Codes of Practice for Insurance Business, and AML/CFT guidance (for long-term insurance business), and may consult with the JFSC before making a formal application.

Key obligations

• Category A applicants must submit the required application form together with the latest financial statements and auditor's report, the latest regulatory return including solvency calculation, written confirmation from the home supervisory authority under Article 7(2)(c) of the IB(J)L, and details of any significant contradictions with the Insurance Codes or AML/CFT Handbook
• Category A applicants whose home regulator is outside the EU should engage in early consultation with the JFSC and consider paragraph 3.5 of the Insurance Business Licensing Policy
• Category B applicants must submit the required application form together with a five-year business plan, projected solvency calculations for each of the five years under the Insurance Business (Solvency Margin) (Jersey) Order 1996, full reinsurance arrangement details, and completed Personal Questionnaires or Additional Appointments Forms for directors, shareholder controllers and key persons
• Category B permit holders must maintain financing sufficient to support the proposed business for the first five years and into year six, with a guideline minimum capital requirement of GBP 100,000 subject to JFSC adjustment
• Applicants must submit a cheque for the application fee with the formal application
• Permit holders must renew their permits annually on 1 October

Applies to

insurance companies, captive insurance companies, special purpose vehicles (transformer vehicles and insurance securitisation companies), Category A permit applicants, Category B permit applicants

Deadlines

• 1 October each year: Date on which all IB(J)L permits are renewable