Usually the Insurance Manager’s first task is to take the shareholders of the new company through the establishment of the company and the process of obtaining its licence from the Financial Services Commission. See here for a typical set-up process. This process would start with initial meetings with the potential shareholders to discuss the business model and the structure of the company, and then progress through the conceptual stages to the licence application and finally the start-up of the business.
The Insurance Manager will have staff who are expert in the requirements to set-up and run an insurance entity, and who have skillsets to be able to provide the insurer with the necessary functions to help the company to stay within financial, fiscal and regulatory requirements in Gibraltar.
The GFSC will often encourage an applicant for an insurance licence to use an Insurance Manager, as the Manager is very familiar with the procedures involved in a licence application, and all have excellent lines of communication with the relevant persons in the GFSC. It has been known even for applicants who intend to maintain all corporate functions inhouse to use an Insurance Manager to assist them through the licence application process. After this stage, the company may then dispense with the services of the Manager, use selected elements of the services he offers, or indeed opt for a full service provision.
Quite common in Open Market Insurers is to start with services provided by an Insurance Manager, and then to phase the Manager’s involvement out as the company grows in financial strength and familiarty with Gibraltar’s business environment, enabling them to move toward a self-managed scenario over time. Insurance Managers are very familiar with this approach, and will be happy to discuss the strategy with a client upfront.
Obviously the answer is something of a piece of string, but Managers are flexible in matching the fees quoted to the services offered. Usually the basis is a flat fee, based on an estimate of the time involved, but there are various options available, including a fixed fee with an annual review, a min-max arrangement with an adjustment for time cost, or a pure time cost arrangement, depending on what suits both Manager and insurer best. In the early years, emphasis is placed on arriving at a cost within known parameters for the insurer, to enable him to accurately budget.