The Isle of Man has launched two new initiatives: a first-of-its-kind economic cluster "Employee Benefits Isle of Man" and formation of the Isle of Man branch of the International Employee Benefits Association.
In a statement on 26 October, it said these initiatives come after a comprehensive strategic review in 2021 which identified that international employee benefit provision is becoming more complex and costly for employers, yet no individual jurisdiction had yet properly developed into an international ‘hub' for delivery.
In response, Finance Isle of Man, an executive agency of the Department for Enterprise, has partnered with a dedicated industry Working Group to set the foundations for a new economic cluster, "Employee Benefits Isle of Man".
This cluster, a first-of-its kind, will be chaired by Nigel Simpson of Zurich International and will bring together employee benefit specialists from across the spectrum of financial services, with the purpose to:
• provide a discussion forum for ideas, opportunities and issues;
• provide a unified industry perspective on proposed legislative changes and government initiatives;
• develop talent and professional standards in employee benefits alongside IEBA;
• promote the Isle of Man globally as a centre of excellence for employee benefits;
• attract new employee benefits businesses to the Isle of Man and grow existing businesses
The cluster formation comes alongside the development of an Isle of Man branch of the International Employee Benefits Association. The Isle of Man is the first International Finance Centre to form a branch of IEBA and will sit alongside their 9 branches based across the UK, US and Europe - providing education, information and professional development opportunities in the evolving area of international employee benefits.
The Isle of Man branch officially launched at an event held in Douglas last week, with the global Chair of IEBA, Issiah Sakhabuth joining as a special guest.
The Isle of Man further stated that it is well-positioned to become a leader in employee benefits with the maturity of its international pension market. With over 50 years' experience as an International Finance Centre, the Isle of Man enjoys a breadth of expertise in business services from which it can support employee benefits - including insurance, fiduciary, pensions, payroll, tax and professional services and wealth management.
Simon Pickering, head of insurance & pensions at Finance Isle of Man said: "I am delighted to set out this ambitious path the Isle of Man is taking to deliver an ‘international hub' for employee benefits. As employees become more concerned with financial wellbeing and employers struggle with rising costs, there is a growing need for corporates to find fit-for-purpose international benefits packages that meet the ever-evolving demands of employees.
"Industry analysis shows that no individual jurisdiction has properly developed into an international ‘hub' for delivery - today's announcements set out how the Isle of Man will become the first to achieve just that."
Issiah Sakhabuth, global chair of IEBA said: "It is great to see the continued development of international employee benefits from the Isle of Man and I am especially pleased to welcome the Island as our newest branch of IEBA. Visiting the Island for the launch event, I was able to witness first-hand the breadth and depth of support this initiative has across both industry and government, and can see very clearly the value that this branch will bring to the global IEBA community."
Zurich's Nigel Simpson, who chairs the industry Working Group, said: "The Isle of Man has been able to provide high quality employee benefit services for a long time now, particularly through its regulated insurance and international pensions sectors. Our vision is to build out the wider proposition significantly so that employers with responsibilities across multiple borders can source from a single, well-regulated jurisdiction with unparalleled technical expertise.
"Most of the component parts exist on the Isle of Man already and our vision now is to pull these together cohesively. The new branch of IEBA plus the formation and development of the Employee Benefits Isle of Man cluster are two very important steps on this journey."
