Jersey Financial Services Commission plans to hike fees for insurance businesses on the crown dependency by 12.9% in a consultation paper issued on 26 August.
The regulator said the aim of the fee rise was to help the body "obtain sufficient funding to carry out our supervisory objectives and to ensure our ongoing financial resilience, we need to raise £1.134m in fees from the insurance sector in 2022."
It said: "In order for us to obtain sufficient funding to carry out our supervisory objectives and to ensure our ongoing financial resilience, we need to raise £1.134m in fees from the insurance sector in 2022.
"The Commission Law contemplates increases to fees in line with RPI, which was recorded as 7.9% in June 2022. Although the cost of regulation continues to rise well in excess of this
metric, our ongoing focus on cost control means that the inflationary component of the proposed fee increase can be limited to this amount.
"An additional fee rate increase of 5% is dedicated to the stabilization of our Financial Resilience as detailed in the Business Plan and Financial Resilience Review published earlier this year."
The combined effect of this was its proposal for a fee rate increase of 12.9% for 2022/23, comprising Jersey RPI of 7.9% and a contribution towards its financial resilience objectives of 5%.
No Civil Financial Penalties have been levied on entities in the insurance sector, which would
be applied to reduce these fees.
The deadline for feedback to the question: Do you agree with the proposed fee increase of 12.9%?, is Sunday 25 September 2022.
