Licensing Policy in respect of activities requiring a permit under the Insurance Business (Jersey) Law 1996 (2011-02-11)

Summary

This is a Jersey Financial Services Commission (JFSC) policy statement setting out how it assesses applications for a permit to carry on insurance business under the Insurance Business (Jersey) Law 1996 (IB(J)L). It explains the two permit categories, the fit and proper assessment criteria the Commission applies, and the documentation applicants must submit.

• Permit categories: Category A permits are for insurers already authorised in another jurisdiction; Category B permits are for all other applicants wishing to carry on insurance business in or from Jersey.
• Fit and proper assessment: The Commission evaluates integrity, competence, financial standing, and structure/organisation of the applicant and persons associated with it (Article 7(4) IB(J)L).
• Track record: Applicants are generally expected to show a minimum three-year satisfactory track record as a supervised insurance business, a satisfactory audit history, and a stable, capable management team.
• Structural options: Applicants can demonstrate resource availability by operating in Jersey with staff and premises, operating as a managed insurance business via an authorised manager, or (for Category A holders without a Jersey presence) providing business from their home jurisdiction.
• Application documentation: Category A applicants must supply the latest audited accounts, latest regulatory return, and written confirmation from the home regulator; Category B applicants must supply a five-year business plan, projected solvency calculations for each of the five years, and full reinsurance arrangement details.
• Ongoing obligations: Permit holders must submit audited annual financial statements to the Commission (Article 19 IB(J)L) and notify the Commission of material changes in circumstances, such as a change of ownership.

The policy also cross-refers to related JFSC publications (Applications under the IB(J)L, Applications for Motor Vehicle Liability Insurance, the Commission's Decision-Making Process, and Outsourcing guidance) and to the Codes of Practice for Insurance Business for further detail on competence and financial resource requirements.

Key obligations

• Applicants must apply for a permit to the Commission in accordance with Article 6 of the IB(J)L using the relevant application form.
• Category A applicants must obtain and provide written confirmation from their home regulator covering authorised classes of business, compliance with home regulatory demands, and inclusion of Jersey business in consolidated supervision.
• Category B applicants must submit a five-year business plan detailing business lines, risk profile, projected costs, capital requirements, financial performance, reinsurance arrangements, and solvency margins.
• Category B applicants must provide projected solvency calculations for each of the five years covered by the business plan.
• Applicants must demonstrate a minimum three-year relevant and satisfactory track record, a satisfactory audit history, and a stable, competent management team (or provide equivalent evidence via directors/executives/shareholder controllers if no corporate track record exists).
• Applicants and permit holders must restrict activities to the licensed insurance business activities and closely associated activities.
• Applicants choosing to operate in Jersey or via a managed insurance business must maintain sufficient management oversight, comprehensive operational and financial records accessible in Jersey, and appropriate systems and controls.
• Permit holders must submit audited annual financial statements to the Commission as required by Article 19 of the IB(J)L.
• Permit holders must notify and satisfy the Commission's fit and proper assessment on an ongoing basis, including where there is a material change in circumstances such as a change of ownership.
• Proposed directors, chief executives and key persons must complete and submit a personal questionnaire to the Commission.

Applies to

insurance business applicants, Category A permit holders, Category B permit holders, managed insurance businesses, key persons of insurance businesses