Gibraltar is subject to the same rules as everywhere else in Europe. Kathryn Morgan explains why insurers really flock to the British Overseas Territory
I was intrigued by Tony Cornell’s article on the implications of Brexit, in particular his statement that: “Many motor insurers use Gibraltar as a means of passporting into the UK. If we leave, its special status within the EU will go. This enables them currently to have lower capital ratios, tax and lighter regulation [my emphasis] giving them a competitive advantage.”
The Gibraltar Financial Services Commission is a recognised National Competent Authority and, as such, we have consistently ensured that we comply with all EU directives and in particular that all of our insurance firms are regulated by professional and accessible supervisors to the standard required by EU Directives.
The capital requirements in Gibraltar under Solvency I were the same as those required in the rest of Europe, and, of course, Solvency II was implemented in Gibraltar with effect from 1 January 2016. Under Solvency II the same capital requirements apply across the whole of the European Economic Area (EEA) – ensuring that the capital ratios required in Gibraltar are as high as the UK and the rest of the EEA.
The Gibraltar Financial Services Commission is a recognised National Competent Authority and, as such, we have consistently ensured that we comply with all EU directives and in particular that all of our insurance firms are regulated by professional and accessible supervisors to the standard required by EU Directives.
The capital requirements in Gibraltar under Solvency I were the same as those required in the rest of Europe, and, of course, Solvency II was implemented in Gibraltar with effect from 1 January 2016. Under Solvency II the same capital requirements apply across the whole of the European Economic Area (EEA) – ensuring that the capital ratios required in Gibraltar are as high as the UK and the rest of the EEA.
So why do insurers set up in Gibraltar? I’m a regulator, not a business person, so my perspective is purely from that angle. The feedback we get from new applicants is that one influence in their choice is ease of access to the regulator – if you email to ask for a meeting next week you will get a meeting next week, and with relevant, experienced regulators.
Another aspect is that we aim to say yes quickly, and no quickly. And if we say no, we say why we are saying no.
And finally, we talk to applicants at least every three weeks so that we can make sure they understand what we need and that we understand how everything is going.
Once a firm is authorised, they will experience bespoke, professional supervision from us, and clear communication of anything we require.
I realise that regulation is just one aspect of any decision to locate, but regulation is part of financial services life. Professional and bespoke supervision appears to make a difference.
Kathryn Morgan, director of regulatory operations, The Gibraltar Financial Services Commission
Once a firm is authorised, they will experience bespoke, professional supervision from us, and clear communication of anything we require.
I realise that regulation is just one aspect of any decision to locate, but regulation is part of financial services life. Professional and bespoke supervision appears to make a difference.
Kathryn Morgan, director of regulatory operations, The Gibraltar Financial Services Commission
article care of
http://www.insuranceage.co.uk/insurance-age/opinion/2456289/why-insurers-set-up-in-gibraltar?utm_medium=email&utm_campaign=IA.Breakfast_Briefing.DU.A.M-F0830&utm_source=IA.DCM.Scheduled_Updates&im_mfcid=2e8a1e834d389beecf25a1ee9d633d29 all rights are their’s.
