insurance

Who is caught

Insurance in Jersey is regulated under two separate regimes. Carrying on insurance business itself is a permit activity under the Insurance Business (Jersey) Law 1996, while general insurance mediation (broking and intermediation) is treated as financial service business requiring registration under the Financial Services (Jersey) Law 1998. The Jersey Financial Services Commission administers both.

Insurance business

• Permit requirement: No person may carry on long-term or general insurance business in or from within Jersey without a permit granted under Article 7 of the Insurance Business (Jersey) Law 1996.
• Category A: For applicants already authorised and supervised by a regulator outside Jersey; the Commission generally relies on the home regulator's assessment, more heavily where that regulator is in the EU.
• Category B: For all other applicants, including captive insurers and special purpose vehicles such as transformer vehicles and insurance securitisation companies.
• Motor liability: Writing motor vehicle liability insurance requires additional approval as an authorised insurer under the Motor Traffic (Third-Party Insurance) (Jersey) Law 1948, in addition to an Insurance Business (Jersey) Law permit.

General insurance mediation

• Registration: Persons carrying on general insurance mediation business must register with the Commission under the Financial Services (Jersey) Law 1998, which lists this as a class of financial service business.
• Classes: The Financial Services (Financial Service Business) (Jersey) Order 2009 sets classes P, Q, R and S, distinguishing standalone mediation, mediation alongside other authorised business, and incidental mediation with or without advice on policy terms.

Both insurance permit holders and general insurance mediation registrants fall within the Commission's general supervisory remit under the Financial Services Commission (Jersey) Law 1998, which lists insurance permit holders among the categories it supervises.

Sources: Financial Services (Jersey) Law 1998 · Financial Services (Financial Service Business) (Jersey) Order 2009 · Financial Services Commission (Jersey) Law 1998 · Insurance Business (Jersey) Law 1996 · Guidance Note: Applications under the Insurance Business (Jersey) Law 1996 · Guidance Note: Applications under the Motor Traffic (Third-Party Insurance) (Jersey) Law 1948 · Licensing Policy in respect of activities requiring a permit under the Insurance Business (Jersey) Law 1996 (2011-02-11) · Feedback on Consultation No. 10 2021: General Insurance Mediation Business and Money Service Business Fees

Key duties

Insurance permit holders

• Application and renewal: Applicants must apply in the required form with prescribed fee and supporting material; permits are renewable annually on 1 October, per JFSC guidance and the fees notice.
• Accounts and audit: Permit holders must keep proper accounting records, prepare annual financial statements, and appoint a qualified auditor whose report is submitted to the Commission (Insurance Business (Jersey) Law 1996).
• Approvals (Category B): Category B permit holders must obtain Commission approval for directors, chief executives and shareholder controllers, and prior consent before changing directors or writing new risks or products.
• Solvency: Category B permit holders must maintain a margin of solvency: at least 17.5% of net premium income for general business, and for long-term business the greater of £50,000 or 2.5% of the required long-term business fund, holding at least 75% (general) or 25% (long-term) of assets as approved assets under the Solvency Margin Order 1996.
• Actuary: Where long-term business is carried on, an appointed actuary must value the long-term liabilities at least annually and endorse the valuation basis and solvency calculation in the annual financial statements (General Provisions Order 1996).
• Category B reporting: Under the General Provisions Order 1996, Category B holders must provide six-monthly financial statements, audited accounts within three months of the financial period end, a five-year rolling business plan, and remain wholly owned by the applicant unless the Commission agrees otherwise.
• Code of Practice: The Insurance Business Code of Practice requires control by at least three appropriately qualified people, adequate capital resources, effective governance with a Compliance Officer, MLRO and MLCO, complaints handling, and submission of an Annual Declaration confirming compliance.
• Transfers of business: Transfers of insurance business under Article 27 and Schedule 2 require Royal Court sanction, with transfer documentation served on the Commission ahead of both court hearings within the timeframes set out in JFSC guidance.

General insurance mediation business

• Accounts and solvency filing: Under the 2005 Accounts, Audits, Reports and Solvency Order, registrants must obtain approval of accounting periods, keep records for at least 10 years, use a Commission-approved auditor, submit financial statements with a declaration and auditor's report within 4 months of period end (extendable to 8), and maintain a solvency margin.
• Client money: Under the 2005 Client Assets Order, insurance money must be held at an approved bank in a segregated insurance broking account, paid in within 3 business days, reconciled at least monthly within 10 business days, and withdrawn only for permitted purposes; a statutory trust and pooling regime applies on default.
• Code of Practice: The General Insurance Mediation Business Code of Practice requires a regulatory span of control of at least two qualified people, a Compliance Officer and MLRO, adequate records and complaints handling, adequate financial resources, and professional indemnity insurance.
• Professional indemnity: JFSC PII guidance requires the Board to assess and document adequacy of cover and to notify the Commission of business-specific exclusions, cancelled or unobtainable cover, retroactive dates and group policy arrangements.

Common duties

• Notifications: Registered persons under the Financial Services (Jersey) Law 1998 must notify the Commission of changes in principal persons, key persons, shareholdings or interests; permit holders must notify material changes in circumstances such as a change of ownership.
• Fees: Insurance business and general insurance mediation registrants must pay application and annual fees under the JFSC Fees Notice, with prescribed late payment and late filing fees for missed deadlines.
• Data returns: Insurance permit holders and Class P or Q mediation firms must complete the JFSC's supervisory risk data collection; failure to return it by the deadline is a Code of Practice breach that may trigger a late filing fee.

Sources: Financial Services (Jersey) Law 1998 · Financial Services (General Insurance Mediation Business (Accounts, Audits, Reports and Solvency)) (Jersey) Order 2005 · Financial Services (General Insurance Mediation Business (Client Assets)) (Jersey) Order 2005 · Insurance Business (Jersey) Law 1996 · Insurance Business (General Provisions) (Jersey) Order 1996 · Insurance Business (Solvency Margin) (Jersey) Order 1996 · General Insurance Mediation Business Code of Practice · Insurance Business Code of Practice · Guidance Note: Applications under the Insurance Business (Jersey) Law 1996 · Licensing Policy in respect of activities requiring a permit under the Insurance Business (Jersey) Law 1996 (2011-02-11) · Guidance Note: Transfers of Insurance Business under the Insurance Business (Jersey) Law 1996 (2014-01-10) · Professional Indemnity Insurance Guidance Note (June 2018) · Updates to our 2024 supervisory risk data collection (2024-09-27) · Feedback on Consultation No. 10 2021: General Insurance Mediation Business and Money Service Business Fees · JFSC Fees Notice 2026

Exemptions and carve-outs

The instruments provide several carve-outs, mainly to avoid double regulation of insurers and to relieve narrow categories of overseas activity.

• Investment business overlap: The Financial Services (Investment Business (Insurance Business - Exemption)) (Jersey) Order 2001 exempts insurance permit holders from Articles 13 to 18 of the Financial Services (Jersey) Law 1998 for investment activity arising from their permitted insurance business.
• Long-term insurers as advisers: JFSC guidance states that insurers merely effecting long-term contracts can remain regulated solely under the Insurance Business (Jersey) Law 1996, but must register under the Financial Services (Jersey) Law 1998 if they provide investment advice; such adviser-registrants are not subject to certain provisions (Articles 13 to 18) that apply to other registered persons.
• Overseas mediation: The 2005 General Insurance Mediation Business (Exemptions) Order exempts overseas persons from registration in defined cases: administering contracts already in existence on 21 January 2005 (time-limited), dealings with an authorised Jersey-incorporated insurer, genuinely unsolicited business, or qualifying agency arrangements.
• Mediation order relief: Under the 2005 Accounts and Client Assets Orders, registrants may apply to the Commission for exemption, and appropriately regulated persons from specified overseas or UK regimes may qualify for exemption; such exemptions may be revoked.
• Definitional exclusions: The Insurance Business (General Provisions) (Jersey) Order 1996 exempts certain general business classes (14 to 18), certain single-member long-term companies, and qualifying vehicle breakdown and roadside assistance benefit-in-kind contracts from the relevant definition of insurance business.
• Data collection: Category A insurance permit holders that do not meet the 'in or from within' test are excused from the insurance sector workbook in the supervisory risk data collection, but must still complete the Section I footprint workbook.

Sources: Financial Services (General Insurance Mediation Business (Accounts, Audits, Reports and Solvency)) (Jersey) Order 2005 · Financial Services (General Insurance Mediation Business (Client Assets)) (Jersey) Order 2005 · Financial Services (General Insurance Mediation Business (Exemptions)) (Jersey) Order 2005 · Financial Services (Investment Business (Insurance Business – Exemption)) (Jersey) Order 2001 · Insurance Business (General Provisions) (Jersey) Order 1996 · Guidance Note: Treatment of Insurance Companies under the Financial Services (Jersey) Law 1998 in respect of Investment Business (2010-09-13) · Updates to our 2024 supervisory risk data collection (2024-09-27)

Enforcement and penalties

Insurance business offences and powers

• Unauthorised business: Carrying on insurance business without the required permit is an offence under the Insurance Business (Jersey) Law 1996, punishable by up to 5 years' imprisonment or a fine, or both; making false or misleading statements to induce insurance contracts or to the Commission is also an offence.
• Directions and intervention: The Commission may require information and documents, conduct investigations, issue directions, exercise powers of intervention, seek injunctions or remedial orders, and issue public statements about permit holders under the Insurance Business (Jersey) Law 1996.
• Appointment of manager: Under the Insurance Business (Appointment of Manager) (Jersey) Order 2008, the Commission may apply to the Royal Court to appoint a manager over an insurer's business in prescribed circumstances, including inadequate management, unauthorised business, or failure to comply with directions.
• Individual directions: Public statements indexed here show statutory directions issued under the Insurance Business (Jersey) Law 1996 barring an individual from acting for any permit holder without prior written approval, with breach an offence under Article 36(7).

General insurance mediation and civil penalties

• Manager and Code action: The Financial Services (Appointment of Manager) (Jersey) Order 2008 allows the Commission to seek a court-appointed manager over financial service business, including where a person is unregistered; breach of the mediation Code can ground additional conditions, directions under Article 23, financial penalties, or revocation of registration.
• Accounts order offences: The 2005 General Insurance Mediation Business Accounts, Audits, Reports and Solvency Order is backed by criminal offences for non-compliance.
• Civil financial penalties: Under the Financial Services Commission (Jersey) Law 1998, the Commission may impose civil financial penalties on registered persons, principal persons and key persons for specified contraventions; the Financial Services Commission (Financial Penalties) (Jersey) Order 2015 sets banded caps ranging up to 8% of average annual turnover for registered persons (up to £4,000,000 for band 2 and 2A contraventions), with lower fixed caps for principal and key persons.
• Late fees: The JFSC Fees Notice and the GIMB/MSB fees regime prescribe late payment fees (5% of unpaid principal per month for mediation annual fees) and late filing fees (£100 per month) for missed deadlines.

Several indexed items are public warning statements about unauthorised or fraudulent operators issued under Article 43 of the Insurance Business (Jersey) Law 1996 or Article 25 of the Financial Services (Jersey) Law 1998; they illustrate the Commission's public-statement power rather than creating new obligations.

Sources: Financial Services (Appointment of Manager) (Jersey) Order 2008 · Financial Services (General Insurance Mediation Business (Accounts, Audits, Reports and Solvency)) (Jersey) Order 2005 · Financial Services Commission (Jersey) Law 1998 · Financial Services Commission (Financial Penalties) (Jersey) Order 2015 · Insurance Business (Jersey) Law 1996 · Insurance Business (Appointment of Manager) (Jersey) Order 2008 · General Insurance Mediation Business Code of Practice · Feedback on Consultation No. 10 2021: General Insurance Mediation Business and Money Service Business Fees · Mr Justin Krzysztof Jozef Nicpon (R) (2012-02-03) · Blue Swan Insurance (Jersey) Limited (2006-02-06) · JFSC Fees Notice 2026