Insurance

Gibraltar is a jurisdiction of choice for insurers, captives, insurance intermediaries, Managing General Agents (MGAs) and InsurTech firms. The Gibraltar Financial Services Commission (GFSC) is responsible for the regulation and supervision of the insurance sector.

The jurisdiction is also well served by Gibraltar’s insurance managers, which provide managerial, back-office and operational functions to many of Gibraltar’s insurance firms.

As is widely reported, it is estimated that approximately 35% of the UK motor insurance market is collectively underwritten by Gibraltar insurers. In addition, Gibraltar insurers are also estimated to underwrite in the region of 20% of the UK’s pet insurance market, with Gibraltar insurance intermediaries accounting for close to 30% of all sales of travel insurance policies within the UK.

Gibraltar is also attractive for InsurTech firms with a number of these technology driven companies authorised by the GFSC in recent years, including the first insurtechs to establish their own insurance companies to underwrite UK business.

Experience

The Insurance team at ISOLAS have extensive expertise on corporate, licensing and regulatory matters and are advisers to insurance companies, insurtechs, MGAs, insurance managers and intermediaries.

Our team is active in the Mergers & Acquisitions space, where we advise on the sale and purchase of insurance firms and groups, including assistance with legal due diligence and on the GFSC’s Change of Control’ approval process.

Our lawyers are regularly instructed on insurance portfolio transfers of general insurance business of Gibraltar insurers. In addition, we have acted on the redomiciliation/migration of insurance companies to and from Gibraltar, including as part of Brexit contingency measures and general restructuring projects.

The ISOLAS Insurance team are also regular advisors in relation to insurance ‘passporting’ matters regarding UK firms seeking to undertake business in Gibraltar and in relation to Gibraltar insurance entities’ access to the UK market. We also act in respect of insurance company insolvencies, liquidations and winding-up proceedings of Gibraltar authorised insurance companies.

Our team has been involved in the development of Gibraltar insurance legislation, including as a result of our involvement in the implementation of sector-specific insurance regulations for the Legislative Reform Programme (LRP) – which comprised the single largest review and reform of Gibraltar’s financial services legislation.

ISOLAS have also contributed to a number of insurance publications, including:

• The Gibraltar Chapter of Thomson Reuters’ ‘Comparative Overview of Insurance and Reinsurance Law and Regulation’
• Law Business Research’s Gibraltar Chapter for ‘The Insurance and Reinsurance Review’.
• The ‘Gibraltar Insurance Guide’, part of Thomson Reuters Country Guides Series.

Gibraltar/UK Market Access

A key component of Gibraltar’s continued attraction as an insurance hub is its unique ability to access the United Kingdom market on a cross-border services or branch basis. Gibraltar’s special relationship with the UK means that a Gibraltar insurer or intermediary is able to sell its services and products to UK consumers on the basis of their GFSC permissions.

UK insurance firms are likewise in a position to offer their own services and products within Gibraltar, as are certain EEA (re)insurers (subject to meeting specified conditions under Gibraltar law). Consumers in both Gibraltar and the UK are therefore the primary beneficiaries of enhanced competition and choice. These strong links will be further cemented under the Gibraltar Authorisation Regime (GAR), which will enable Gibraltar-based financial services firms to continue to access the UK market on the basis of high shared standards and close regulatory co-operation.

Insurance groups and their principals are also attracted by the jurisdiction’s tax rules, which include competitive rates of both personal and corporate taxation. There is also no capital gains tax in Gibraltar, nor is there any withholding tax on interest or the payment of dividends.

Applications to Gibraltar Financial Services Commission (GFSC)

Due to its relatively small size, Gibraltar is able to offer greater speed-to-market than most jurisdictions. This is possible as a result of the GFSC’s in-depth knowledge of the insurance industry, which enables the regulator to process applications and approvals flexibly, yet robustly.

This ensures a smooth application process for applicants, as well as a collaborative and supportive supervisory approach with firms once in receipt of their GFSC permission(s). The GFSC has also implemented a Staged Authorisations Process which will allow it to apply a risk-based approach from an early stage of discussions with potential applicants.

Similarly, change of control applications are processed swiftly by the GFSC Authorisations Team, which understand the commercial sensitivities involved in acquisitions and restructuring transactions.

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