Insurance Company Affidavits posted

  • Anonymous
  • unspecified
  • Offline
Posted: Sat, 21/02/2009 - 10:55

The affidavits of the insurance companies are now up on the public site under Facts/Court Documents HERE

Bond holders should read these carefully.. they purport to represent your interests.

5
Your rating: None Average: 5 (3 votes)

Comment viewing options
Select your preferred way to display the comments and click "Save settings" to activate your changes.

@ LondonTeam

  • Anonymous
  • Offline
  • Sat, 21/02/2009 - 12:42

Thanks for posting those affidavits.

I've not yet read them but is it just Royal Skandia (seen elsewhere) and not the other Insurance Companies, whose "proposal" (?) at first sight suggests that smaller and medium sized depositors should be disadvantaged for the benefit of BondHolders (and larger depositors ?).

What please, London Team, is your view on this ?

............. and should it not be smaller / medium depositors who should now read these affidavits very carefully ?

Thanks for your continuing efforts on behalf of ALL (hopefully) depositors and investors.


Bobby - read them carefully

  • skintagainnow
  • 10/10/08 31/05/09
  • a depositor
  • Offline
  • Sat, 21/02/2009 - 13:18

Bobby - read them carefully what they are trying to do is split their holdings to individual accounts ie individual smaller bond holders - and have those accounts set a minimum return under SOA ie a guarantee for smaller bond holders similar / the same as that of direct depositors. If this were to happen under the current SOA set up, it would further disadvantage >£50K direct depositors in that if (and would appear probable) 100% return was not achieved the higher depositors would be taxed even more to pay for the garantees of the <£50 depositors.

This move I believe would net them more back than the current set up and from their view minimise the outcry from lower value bond holders and possible legal action against them and their IFA's. Any action class or otherwise against these companies and / or the IFA's would be well publicised and severly damage their future operations.


Insurance companies

  • bobwin
  • 23/12/08 n/a (free)
  • a depositor
  • Offline
  • Sat, 21/02/2009 - 11:35

Well, well, well after 4 months, they finally made a contribution and they are all using the same Hymn sheet.

Of course they want SOA or they will get naff all back---they will never recover a significant amount for their bond holders but that is not the companies' money anyway.

I am incensed by their comment that most of their bondholders are small investors and would be better off were they treated in the same way as ordinary depositors---well they are not and under the DCS would get a share of 20,000 plus any further divdends from liquidated assets.

I am sorry for bond holders who thought they had a safe investment, but it is the Insurance companies that have stitched you up, not KSFIOM bank depositors.

If the Insurance companies manage to change the rules to benefit individual bond holders so that they are treated as depositors, it will PROVE that the whole of the system is corrupt.

They messed up and now want to change the rules---what a bloody cheek!


Insurance companies.

  • German Mike
  • 13/10/08 31/05/09
  • a depositor
  • Offline
  • Sat, 21/02/2009 - 12:16

It does seem to me that the insurance companies are using the (ill defined) SoA to move the goalposts, and attempt to negate the up to £50k guarantee built in to the DCS. This is clearly wrong, but of greater concern is that they should even seek to do so.

Whatever the differences existing in the DAG - SoA v. DCS, large deposit interests v. smaller deposit interests, etc. - it has been held up to now that the legal right of sub-50k depositors, indeed all depositors, to the undertaking passed in Tynwald should be intrinsic in any final deal. This I feel should now be re-affirmed by the DAG if credibility and coherence is to be maintained.

Further, I think it is quite important if not crucial that the Court be made aware that this blatant attempt to undermine the recently passed statute is not acceptable to DAG, whether or not we go SoA or DCS. If that cannot be done, then clearly sub-50k depositors are going to move to defend their legal protection anyway - there seems no alternative to doing that whatever the level of discomfort felt for other depositors.

All depositors, large, small, bondholder or whatever, chose to put their money in the amount they alone decided and on the terms and conditions known to them at the time. And I'm afraid they are bound by that decision whether it feels right or not. Throwing a legal framework out of the window for the benefit of a particular group at the expense of another isn't on, and I sincerely hope the insurance companies will be told where to take their proposal in no uncertain terms.


@German Mike

  • IceCrusher
  • 14/10/08 25/10/11
  • a depositor
  • Offline
  • Sat, 21/02/2009 - 16:29

The big question is, why has IoMG endorsed construction of the 'Save our Arses' document in such a fashion as to permit this to happen? This is apparently a pretty big enticement to the Life Cos' to support the SOA.


The Life Insurance Sector of the Island

  • Spanishfly
  • 25/10/08 31/05/09
  • a depositor
  • Offline
  • Sat, 21/02/2009 - 17:53

If you read the PR from the IOM Below , Ask who is going to make the biggest sucking up noises The finace sector is possibly over 35 % of the island economy look at where the IOM bread is buttered, SOA is aimed at this sector under DCS they get next to nothing !

Insurance

The insurance sector on the Island developed chiefly following a decision in the early 1980s to encourage diversification within the Islands economy. Companies carrying out insurance business in or from the Isle of Man are required to be authorised under the Insurance Act 1986 (as amended). Regulations made under this Act provide for detailed supervisory reporting requirements.

The Act seeks to ensure that senior management and controlling parties of insurance businesses are fit and proper and that the companies are financially sound. The legislation is clear and comprehensive and its reporting requirements satisfy the IPA's strict supervisory needs without placing unnecessary demands on the market place.

The IPA is committed to the continued development of an appropriate and up-to-date regulatory framework and was one of the first domiciles to introduce legislation allowing captive insurance companies from other territories to re-domicile to the Island without being liquidated in the original territory. This has considerable savings for the company concerned both in time and cost. The Authority has also introduced legislation in March 2004 to allow the formation of protected cell companies (PCCs). Such entities will offer a means of alternative risk transfer to companies for which traditional insurance was previously the only commercially viable option.
Insurance

The insurance sector on the Island developed chiefly following a decision in the early 1980s to encourage diversification within the Islands economy. Companies carrying out insurance business in or from the Isle of Man are required to be authorised under the Insurance Act 1986 (as amended). Regulations made under this Act provide for detailed supervisory reporting requirements.

The Act seeks to ensure that senior management and controlling parties of insurance businesses are fit and proper and that the companies are financially sound. The legislation is clear and comprehensive and its reporting requirements satisfy the IPA's strict supervisory needs without placing unnecessary demands on the market place.

The IPA is committed to the continued development of an appropriate and up-to-date regulatory framework and was one of the first domiciles to introduce legislation allowing captive insurance companies from other territories to re-domicile to the Island without being liquidated in the original territory. This has considerable savings for the company concerned both in time and cost. The Authority has also introduced legislation in March 2004 to allow the formation of protected cell companies (PCCs). Such entities will offer a means of alternative risk transfer to companies for which traditional insurance was previously the only commercially viable option.

The Life Assurance Sector

The Isle of Man has probably the largest offshore life assurance sector. The Island's combination of highly skilled staff, strong but appropriate regulation and flexible fiscal options has seen it develop into one of the worlds leading centres for offshore life assurance. It is home to the international subsidiaries of highly respected life assurance companies, which attract business from all around the world.

The Isle of Man, with its wealth of experience in the international financial services sector, has exceptional qualifications in the field of life assurance. Furthermore, the Island has a highly trained workforce with experience of the international life insurance market, its products and administration requirements. Its people are responsive to the needs of this demanding market and provide the high levels of service required. Specialists in their respective fields are also on hand to assist new and existing businesses.

The Income Tax (Exempt Insurance Companies) Act 1981 was repealed with effect from April 2007 under the Income Tax (Corporate Taxpayers) Act 2006. Insurance companies are now subject to income tax at a rate of 0%.

The life assurance companies based on the Island are leaders in the development and distribution of some of the most innovative life assurance products to be found. They are ready to meet the changing demands of an international market. It is this expertise that attracts highly respected corporations to set up their insurance subsidiaries in the Isle of Man.

One of the key drivers behind the growth in life business on the Island is the security afforded to policyholders by the Policyholders Protection Scheme. In the event of a default, the scheme offers compensation to policyholders of up to 90% of amounts due to them, funded by a levy on all life insurance companies operating on the Island. Unlike many other policyholder protection schemes, the Island's system operates globally, covering investors no matter where they reside. For further information see the Life Insurance (Compensation of Policyholders) Regulations 1991.

The Captive Sector

For captive insurance companies, the Island has the necessary local expertise to ensure that the formation and running of a captive insurance company can be achieved with maximum ease. The market leaders in captive management are represented on the Island. The Island is also home to many suitably qualified personnel with a wealth of captive expertise and international experience to act as locally based directors.

The Island has been a recognised captive domicile for over quarter of a century. The sector has remained buoyant over recent years in spite of the relatively soft commercial market. It is now in a strong position to offer alternative means of risk management against a backdrop of falling capacity and rising premiums across many lines.

Captives have become an integral part of the risk management strategy of large companies and continue to offer one of the most effective and widely used methods of risk financing. The Isle of Man is one of the most successful captive locations, attracting business from many parts of the world. Recent years have seen the development of diverse alternative risk transfer vehicles

The Island's Government is committed to the development of the captive insurance sector and in March 2004, legislation was introduced to allow the setting up of Protected Cell Captives within the jurisdiction. PCCs can provide a means of entry into the captive insurance market to entities for which it was previously uneconomic. The overheads of a protected cell captive can be shared between the owners of each of the cells, making the captive cheaper to run from the point of view of the insured.