Gibraltar International Magazine Feb Mar Apr 2024 by Gibraltar Finance

Feb/Mar/Apr 2024

I NTE R NATI O NAL FINANCE n INVESTMENT n BUSINESS

The need to know guide for buying property in Gibraltar

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Considering launching your financial services business from Gibraltar? Our Financial Services team has been at the forefront of Gibraltar’s growth and in particular in developing Gibraltar as a jurisdiction of choice for the establishment of ﬁnancial services businesses. They are perfectly placed to direct you through the process.

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Gibraltar International Magazine is grateful for the support of the finance industry and allied services in the form of committed sponsorship We would like to thank the following sponsors: GIBRALTAR FINANCE Tel: + (350) 200 50011 • info@financecentre.gov.gi www.gibraltarfinance.gi ARTEX RISK SOLUTIONS (GIBRALTAR) LIMITED Tel: + (350) 200 74570 • info@artexrisk.gi www.artexrisk.com BANK J. SAFRA SARASIN (GIBRALTAR) LTD Tel: + (350) 2000 2550 gibraltar@jsafrasarasin.com www.jsafrasarasin.com BDO LIMITED Tel: + (350) 200 47300 • info@bdo.gi www.bdo.gi

ISOLAS Tel: + (350) 2000 1892 • info@isolas.gi www.gibraltarlawyers.com KPMG Tel: + (350) 200 48600 • info@kpmg.gi www.kpmg.gi PIRANHA DESIGNS Tel: + (350) 200 45599 • info@pdg.gi www.pdg.gi

DELOITTE Tel: + (350) 200 41200 • gibraltarinfo@deloitte.co.uk www.deloitte.gi

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Gibraltar International

I N T E R NAT I O N AL Feb/Mar/Apr 2024

Contents

Volume 30 Number 1

News P6 A round up of business news from the Rock

Gibraltar Finance Report P8

Published by Gibraltar International Publications Ltd 71 Irish Town PO Box 395 Gibraltar GX11 1AA

Gibraltar’s Crypto Evolution from fringes to centre stage

Property P12 The need to know guide for buying property in Gibraltar

Editorial enquiries editor@gibraltarinternational.com

Insurance Law P16 One size never fits all – a Dual Regime is needed

Women in Business P20

Advertising enquiries sales@gibraltarinternational.com Design design@gibraltarinternational.com UK Agent Tel: +44 (0)7791 563442

No part of this publication may be reproduced without the written permission of the publishers.

Disclaimer

Gibraltar network going from strength to strength

Insurance P22 The 2024 outlook for Gibraltar’s motor insurers

Gibraltar International Publications Limited have tried to ensure that all information is accurate, but emphasise that they cannot accept responsibility for any errors or omissions, and that they accept no responsibility for statements made by contributors or for any claim made in an advertisement.

Business P26 Outsourcing your payroll can offer numerous advantages to businesses of all sizes

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News “I think we’re close”, says Albares on Gibraltar’s post-Brexit deal? Spain’s Minister for Foreign Affairs, Jose Manuel Albares, said in late January, that both Spain and the UK/Gibraltar want a UK/ EU treaty, adding: “I think we’re close, but cautioned that “we have to do it soon”. Speaking at a breakfast briefing in Madrid, organised by the Nueva Economia Forum, Mr Albares said that while he was

positive on the Gibraltar negotiation, there were still areas of disagreement. The UK Foreign Secretary, David Cameron, had discussed the treaty negotiation with Mr Albares at the Davos meeting the previous week. In a response to a report from the European Scrutiny Committee, the UK

Government said it remains “steadfast in its support for Gibraltar”.

Gibraltarian selected in The Top 25 Women Leaders in FinTech Beatriz Callaghan, Sales Director at Digital Asset, was recently selected in the Financial Technology Report’s ‘The Top 25 Women Leaders in Financial Technology’. Miss Callaghan was selected along with CEOs, Vice Presidents, and founders of cutting-edge FinTech companies. The report said: “The FinTech industry represents a fusion of innovative solutions

that leverage cutting-edge technologies to enhance and revolutionize traditional financial processes. The exceptional women featured in this year’s list play an increasingly pivotal role in the sector, contributing diverse perspectives to the development of FinTech solutions”. Starting her career in 2018 as a Business Development Analyst at Lazada

SEC approves first spot Bitcoin ETFs The crypto market has breathed a sigh of relief as a series of highly anticipated Bitcoin Exchange Traded Funds (ETFs) have been approved by the U.S. Securities and Exchange Commission (SEC). In what can only be described as a milestone ruling, the ETFs will allow both retail and institutional investors to trade through a regulated product, protected from unnecessary risks and fees. The top American securities regulator cleared 11 ETFs, and crypto advocates are confident that this will draw new retail and institutional investors into the market. Gibraltar welcomes this watershed moment for the Distributed Ledger Technology (DLT) industry – it shows what can be achieved when financial players collaborate with regulators.

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Group, Miss Callaghan went on to cofound Bombom, Morocco and MR. BOHO, showcasing her entrepreneurial skills.

Former Financial Services Minister awarded CBE Albert Isola, the former Minister for Digital and Financial Services was awarded a CBE in this years New Year Honours List. Mr Isola was elected to Parliament in 2013, and was instrumental along with the Gibraltar Finance team in promoting and regulating the growing Gibraltar FinTech, DLT industry. After being appointed, Mr Isola posted: “What an honour to have been awarded the CBE in todays New Years Honours list”. The Gibraltar International Magazine Team would like to take this opportunity to congratulate Mr Isola on his well-deserved award, and to thank him for his many years of support of the magazine while in government. We wish him every success in his return as Senior Partner at ISOLAS LLP.

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Gibraltar Finance Report

Gibraltar’s Crypto Evolution from fringes to centre stage

By Paul G. Astengo, Senior Executive, Gibraltar Finance, HM Government of Gibraltar

ix years ago, cryptocurrency, blockchain, and Web3 technologies were on the fringes of the finance sector, with few regulators acknowledging the potential they had to transform their respective ecosystems. Despite being valued at nearly $1 trillion, the crypto market was akin to the ‘Wild West’ of finance. That was until Gibraltar recognised the value of cultivating an environment that fosters innovation while simultaneously implementing strategic objectives related to the advancement of the blockchain industry. In 2018, Gibraltar introduced its landmark principles-based Distributed Ledger Technology (DLT) framework, intending to foster a culture of financial innovation for the jurisdiction by attracting key players in the decentralized finance sector.

Now, six years on, cryptocurrency has found its seat at the finance table. The crypto winter is thawing and perhaps preparing for its next bull run with much anticipation — and regulators are now catching up to early adopters to shape the next iteration of DeFi. With this in mind, it is the perfect time to take stock of what has been achieved over those years, and what opportunities lie ahead for Gibraltar to capitalise on its position as an established crypto hub.

What has been achieved? The introduction of Gibraltar’s principlesbased DLT framework set out to cultivate an environment where innovative firms could thrive while demonstrating an ability for them to adhere to the highest standards of regulation. This balanced approach to regulation has allowed Gibraltar to attract Continued p10

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Your gateway into the UK Robus is an independently operated insurance management, actuarial services and financial advisory group with companies in Guernsey and Gibraltar, offering services to open market insurers, reinsurers, intermediaries, corporates and captives. We provide consultancy, feasibility studies, business planning, support with licence applications, and ongoing insurance and company management, partnering with our clients so they derive the value of our local expertise and advice.

Actuarial function reporting

Feasibility studies

Licence applications

Legacy business and run-off solutions

Compliance

Regulatory liaison

Risk management

Robus is the only Insurance Manager in Gibraltar with in-house actuarial capability Due diligence reporting able to deliver services to a UK IFoA code standard. Our in-house team and associates have extensive experience in both general and Arrange/ life insurance, offering a wide range of services provide company including actuarial function reporting and other directorships Actuarial solvency II requirements, reserving and capital reserve reviews management tasks. We also have a proven track record & consultancy in providing solutions for run-off and legacy businesses.

Company secretarial

Finance & accounting Solvency & capital modelling

To learn how clients are benefitting, please contact: Paul Cole, Managing Director, Robus Risk Services (Gibraltar) Limited E paul.cole@robusgroup.com T +350 20077065

John Harris, Group Business Development Director

E john.harris@robusgroup.com T +44 (0)7984 149041

www.robusgroup.com Robus Risk Services (Gibraltar) Limited is incorporated in Gibraltar (company number 106704) and registered at 5/5 Crutchett’s Ramp, Gibraltar, GX11 1AA. It is authorised and regulated by the Gibraltar Financial Services Commission for insurance and company management.

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Gibraltar Finance Report Continued from p8

innovation from a plethora of pioneers in the crypto industry who rely on the jurisdiction’s clear regulatory guidelines. Gibraltar’s success in developing a strong presence in this market can be attributed to the adaptable nature of its principles-based framework. When regulating emerging technologies, flexibility has proven paramount time and time again. Of major importance to prospective permissioned firms, is that regulatory certainty that supports their significant investment in their businesses. Gibraltar’s DLT Regulatory Framework provides that without doubt.

Changing of seasons The last six years have seen the crypto market balloon, crash, and recover, so it is not surprising that it has gained a reputation for being volatile and unstable. Yet, with each crypto winter comes a crypto spring on the horizon. Bitcoin notably exceeded a value of $43,000 in November for the first time since the Terra-Luna crash in 2022, signalling to spectators that a bull run is nigh. Meanwhile, on the regulatory front, the EU and UK have made significant headway in establishing coherent frameworks that support the growth of DeFi and Web3 technologies. The EU’s MiCA regulation sets out to support the development of the virtual assets market where regulation does not already exist, while the UK has made clear its ambition to attract DeFi firms through its various crypto consultations. It is a stark contrast to the scant regulatory landscape that existed six years ago, demonstrating a strong appetite for innovation as well as fostering spirited competition in the race to become the crypto hub of choice.

What is next? The crypto market has fluctuated in value for the past few years, but Gibraltar has no intention of slowing down its ambitions in encouraging high-quality DLT firms to seek regulatory headquarters in Gibraltar. In 2018, Bitcoin was valued at around $16,000 and has almost tripled in value since that time —

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while the overall crypto market has broken

the storm, as it promotes financial stability,

the one trillion valuation mark.

protects users from bad actors, and

With a crypto bull run upon us, we

safeguards consumers and businesses.

anticipate that demand for licenses from

Regulation holds virtual asset service

DLT firms may well increase, and we, and

providers and crypto exchanges to a higher

Gibraltar’s regulatory bodies, will have to

standard while defending against bad actors

be ready to meet that demand. Globally,

who would cause harm to consumers and

jurisdictions outside of the EU are now

the jurisdiction’s reputation. The way we

beginning to recognise the value of bespoke

process payments, transactions, and assets

regulation, with the UAE introducing its own

is changing, and Gibraltar is ready for the next

framework for DLT firms too.

chapter of finance.

With institutional backing of blockchain, such as what the Bank of England has demonstrated through its collaboration with Fnality, we can foresee the mainstream adoption of cryptocurrency on the horizon. The past crypto winter has shown us that only clear regulation can be a beacon in

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Property

The need to know guide for buying property in Gibraltar By Sarah Bray, Partner and Katrina Isola, Associate, ISOLAS LLP

nyone can buy a property in Gibraltar which is on the open market. However, there are certain properties that belong to a restricted market known as the 3-year residency rule.

1. What is the 3-year residency rule in Gibraltar? Certain properties in Gibraltar are only available for purchase by those who have been living in Gibraltar for a continuous period of 3 years. These properties may only be occupied by the owner and family and cannot be rented out. They are not suitable for buyto-let investors.

2. Can I buy my property in the name of a company? Yes, you can buy property in the name of a company, whether the company is incorporated in Gibraltar or outside of Gibraltar. Property owned in a company name is still subject to tax and you should obtain tax advice at the point of purchase, which we can assist with.

3. What should we consider before starting our property search? There are many things that one should consider before starting their property search. We consider the following to be some of the most important: • budget and financing plans; • type of purchase: off-plan / re-sale / buyto-let; • whether the intention is to live in the property, rent out or sell on;

• mortgage plan; • location of property; • parking access; • residency requirements; • future construction around the property; • planning restrictions; and • housing rules (such as pets).

4. What is the purchasing process? This is a very broad question and can have a number of different answers depending on the type of property, for instance, whether one is interested in an off plan, government and/or the open market and whether a property is being purchased with the assistance of a mortgage or not. Therefore, a brief summary of the standard process with regards to a standard purchase and sale is more suitable: The standard purchase process in Gibraltar begins with the agents issuing a memorandum of sale to the respective lawyers whereby usually a 2% refundable deposit is payable to reserve the property on a ‘subject to contract’ basis. Thereafter

the Purchaser’s lawyer submits pre-contract enquiries to the vendor’s lawyer which will contain various questions about the property such as: the items to be sold with the property (if any), exchange and completion dates, service charges, rates, information with respect of a management company, whether the property has suffered any water ingress and whether there have been any alterations made to the property etc.. The Purchaser’s lawyer will review copies of the original title deeds forwarded by the Vendor’s lawyer to ensure good root of title and the lawyers will draft, review and approve all relevant documentation necessary for the purposes of exchanging contracts and thereafter completion. Exchange of Contracts can either occur prior to completion or on the same date as completion. Usually, a percentage of the purchase price is paid at the time of exchange of contracts by the Purchaser to the Vendor. Once exchange of contracts has taken place the parties are under a legal obligation to complete the transaction on the agreed completion date in accordance with the terms Continued p14

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Insight within reach KPMG’s industry-leading betting and gaming team lands in Gibraltar

To find out more, contact: Charlie Leach, Associate Director charles.leach@kpmg.co.uk

© 2024 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.

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Property Continued from p12

of the agreement. Should the Purchaser be buying with a mortgage, the Purchaser’s lawyer or bank’s lawyer (as the case may be) will prepare the deed of mortgage, liaise with the bank and prepare a report on title and request for funds in order to ensure that the mortgage funds are transferred on the date of completion. The vendor’s lawyer will also prepare a completion statement which will apportion rates and service charges to the date of completion depending on whether these have been paid up to date or not. Once the completion statement has been approved by the respective lawyers, the Purchaser’s lawyer will request the funds for the purposes of completion. This will include (but will not be limited to) registration costs, stamp duty costs and management company/lessor approval fees. On the date of completion, the relevant deeds are to be executed by all parties and monies transferred from the Purchaser’s law firm’s client account to the Vendor’s law firm’s client account to be held in escrow pending completion. Once the Vendor’s lawyer confirms safe receipt of monies and receives the fully executed deed, they would release the title deeds and any related documents to the property to the purchaser’s lawyer, completion is said to have taken place and keys are released to the Purchaser as new owner.

5. What is Conveyancing Property law? Conveyancing Property Law is the legal transfer of property from one person to another.

6. What is a Memorandum of Sale? A memorandum of sale is a form which records the details of the sale. These details include, but are not limited to: purchase price; • property address; • deposit paid by purchaser to the agent; • vendor’s name, address, phone number, lawyer details; • purchaser’s name, address, phone number, lawyer detail; and • any other agreed terms.

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7. Will my bank outside of Gibraltar give me a mortgage on a Gibraltar property? It is possible for a non-Gibraltar lender to take security over a Gibraltar property. However, it is rare. The majority of mortgages on Gibraltar properties are from banks/ branches situate in Gibraltar.

8. Can you help me obtain a mortgage for a Gibraltar property? In order to start the process of obtaining a mortgage, the initial application would need to be made yourself, there are a number of reputable banks here in Gibraltar, all of whom we work with and would be happy to introduce you to. We would then handle the legal work once you have a facility letter in place from the bank you have chosen. If you are purchasing a property with a mortgage here in Gibraltar, we can assist by drafting the Deed of Mortgage and liaise accordingly with the bank and the Land Registry. Should you wish to sell a property of which you have a mortgage over that property, we can assist by drafting the Deed of Release of Mortgage and liaise accordingly with the lawyer for the Purchaser, representatives of the bank and the Land Registry, where necessary. We can also assist should you wish to up-stamp/obtain a further advance in respect of your existing mortgage. Stamp Duty payable on mortgages or further advances secured in Gibraltar are at the following rates: • Mortgage amount of £200,000 or less at 0.13%; • £200,001 or over at 0.20%; and • Releases of Mortgage are calculated at 0.03% of the original amount borrowed.

9. What is Stamp Duty payable on? Stamp Duty Land Tax is the tax that the government charges when an individual or company purchases a property. It is payable at the following rates: (i) 0% where the value of the property does not exceed £200,000;

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(ii) 2% on the first £250,000 and 5.5% on the balance, where the value of the property exceeds £200,000 but does not exceed £350,000; and (iii) 3% on the first £350,000 and 3.5% on the balance where the value of the property exceeds £350,000 Effective from the date of the Gibraltar Government’s Budget speech, on the 11th of July 2023, first or second time buyers in Gibraltar are exempt from paying Stamp Duty where the value of the purchase price does not exceed £300,000 (this excludes companies). Therefore, for first or secondtime buyers in Gibraltar, the following rates would apply: (i) 0% on properties up to £300,000; (ii) 5.5% on properties valued between £300,001 and £350,000; and (iii) 3.5% on properties valued over £350,000 The 2023 Gibraltar Budget Speech also confirmed that the stamp duty payable on property purchases over £800,000.00 would increase from 3.5% to 4.5%. This change has not yet been implemented but is expected to do so in 2024. Stamp duty on releases of existing mortgages are calculated at 0.03% of the amount borrowed.

10. Any extra costs to be aware of (in addition to stamp duty)? Some of the costs that clients will be required to meet and should therefore keep in mind are: • registration costs in registering property deeds at the land registry; • property searches; • sealing fees; and/or • management company and/or lessor approval fees.

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Insurance Law

One size never fits all – a Dual Regime is needed

By David Coupe, InsureLaw Consultants Limited

he UK insurance sector complains about costly, burdensome and unnecessary regulation, and unresponsive and slow regulators. The UK market is recovering from significant claims and suffering inflationary times, and raising more capital is more costly. Insurers and MGAs are pulling out of lines simply because they are too difficult to deal with due to regulatory or cost reasons. Expenses, especially salaries, have risen. And all of this despite premium rates increasing and holding steady for 2024. UK entities are crying out for real game changers, and Gibraltar can provide this.

Artificial Intelligence and technology The noise is around the use of AI and technology to drive “better outcomes” for insureds, and reduce costs. However, the UK doesn’t need an offshore innovation hub for these – it has them and they are well funded. Lloyd’s and the UK have brought in

and/or developing captive regimes. Bermuda, Guernsey and others offer successful PCC structures that are more flexible than Gibraltar’s. Dublin, Dubai and others have set up separate financial services centres with tax breaks, lower levels of regulation, and other incentives. Speed to market is fundamental. UK entrepreneurs are being stifled by slow regulatory processes. For each that succeeds, twenty don’t. What is a great idea today often disappears tomorrow. Guernsey has recently approved a commercial MGA and Protected Cell structure in a little over 2 weeks, and yet no one sees Guernsey as an unsafe financial regime (albeit that Guernsey isn’t bound by UK regulations). The current drive to promote local talent is to be applauded. However, without the experienced mentors, who will teach them? How would we attract senior underwriters to come here to pass their knowledge? Could we create an Insurance, AI and Insurtech University? Could we sponsor UK expertise to come? Continued p18

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Insurance Law Continued from p16

PPC We would not need the current requirement for Gibraltar resident directors. These wholesale businesses operate around the world – they work by Zoom. This doesn’t reduce accountability. And each Gibraltar entity will in any case benefit from massive PI and D&O programmes written by each group. We should disapply Section 83A for these entities. The Section is a significant turn off for overseas investors. They view it as something far more invasive than in the UK, and an unnecessary regulatory interference. The wholesale market will not come with this in place. Why cannot we have a PCC structure for aligned wholesale intermediaries with lighter touch regulation, and a real speed

Financial Conduct Authority The Gibraltar Authorisation Regime (GAR) will tie UK and Gibraltar regulation together. Gibraltar will have free access to the massive UK market. However, GAR brings difficulties. The UK will want Gibraltar to provide no less regulation than in the UK. However, if the FCA Handbooks are substantially adopted, then we must accept that (I am told) some 8 metres of paper piled high will need to be embedded into Gibraltar laws. Gibraltar doesn’t need this - we need the “dual regime”. What is the dual regime? The UK will not allow Gibraltar to operate a lesser regime regarding UK consumers (however badly embedded in the UK already). However, when dealing with “non-consumers”, we should be insisting on creating a new focussed and flexible wholesale regime. The FSC should set up a corresponding separate wholesale division to deal with this regime.

MGAs A Gibraltar regime created for the nonconsumer business with lighter touch regulation promising quicker response and speed to market would clearly be of

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interest. A UK MGA or wholesale broker dealing with producing brokers in say the US is regulated like any other broker. They must currently comply with a consumer code which has little or no relevance to them. There is supposed to be proportionate regulation, and yet the dividing line in the UK is distinctly blurred. Who does this benefit? Let Gibraltar create regulation that reflects genuinely what these intermediaries do with lower cost and regulation. Gibraltar could offer the incentive to them: split your businesses, and bring your wholesale business here. Where these large businesses go, they bring the insurers and markets with them. This brings little or no regulatory risk or need for regular oversight. We should reduce the capital requirements for these brokers and MGAs. The 4% level is considerably greater than in the UK, and disincentive offering no benefit. Wholesale businesses facilitate the distribution chain. If they disappear, the insured suffers no loss since its contract is with the insurer and remains. None of the top 10 wholesale MGA’s or brokers would simply walk away from a Gibraltar operation due to the reputational damage it would cause.

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to market? MGA’s want their own captive capacity – why not an MGA PCC running alongside and Insurance PCC, with each cell writing niche business? Developing reinsurance and ILS markets alongside this wholesale market should be attractive to Gibraltar. We don’t need the UK’s consumer duty hovering over these. Again, these should need less regulatory supervision and should not threaten the stability of Gibraltar direct UK offering. The idea of splitting consumer business away from other business clearly makes sense. Let Gibraltar prove to the UK and the international markets that an offshore wholesale market can be created that benefits all.

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Women in Business

Gibraltar network going from strength to strength WIN was inaugurated in May last year, and was endorsed by Hannah Gurga, Director General, and Sheryl Fernando, Commercial Director, Association of British Insurers (ABI). Erika Pozo reports

he Women’s Insurance Network (WIN) was formed by a steering group of women in the insurance industry, whose aims are to empower and elevate women to assume more senior roles in the insurance sector. The inaugural breakfast event saw a significant turnout of companies, sponsors, and industry associations. Going into the nexus of this group, WIN was created in a move to create a safe environment for locally based women in insurance to network and address gender inequalities in the insurance sector. Announced on International Women’s Day 2023, cofounders Erika Pozo, Lisa Casemore, Lorraine Povedano and Charlotte Kirkby invited expressions of interest for women interested in joining a newly set up steering committee. Joining the team before its official inauguration were established industry professionals Liz Quinn, Kathryn Morgan, Monika Sookhee and Yvonne Chu bringing a wealth of experience to the project. Since WIN’s inauguration the network has been very active and has held various seminars. These events are aimed at elevating women in the local insurance industry through networking forums. To date these include a Start Up Grind panel breaking barriers & a networking clinic held & sponsored by Hassans led by Kathryn Morgan and hosted by Yvonne Chu. Other events aimed at raising awareness

20 Gibraltar International

spearheaded by Lorraine Povedano, for causes such as Breast Cancer were also held during October 2023. It is no doubt that the work of the group has not gone unnoticed, with WIN’s public acknowledgement during the Insurance Breakfast of Gibraltar Day London Events in October 2023. The formation of the group has been very much welcomed by The Gibraltar Finance Centre and the Gibraltar Insurance Association (GIA) who have demonstrated a willingness to work collectively.

Christmas Gala In December the Women’s Insurance Network kicked off the festive season with their first sponsored Christmas Gala at the Mons Calpe Suite, in aid of Breast Cancer Support Gibraltar. Over 60 women attended the sponsored event, with representatives from the Finance Centre, and the Hon. Minister for Equality Christian Santos. Opening the event was co-founder Erika Pozo who gave a brief speech on the work done by WIN during 2023, shortly introducing Liz Quinn who gave an empowered speech on the importance of diversity in the workplace, as Deputy Chair of the Gibraltar Insurance Association. Following some closing remarks by the Minister for Equality, Hon. Christian Santos, a lovely evening ensued with a buffet style dinner, live music, and a raffle which raised a total of £740 for Breast Cancer Support Gibraltar. The network as part of its ‘New Year, New Goals’ initiative, launched its own targeted Mentoring Scheme in January 2024. Run by experienced and established individuals

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working within the sector, who have carefully selected a panel of sector specific mentors who are carefully matched to their mentees. The aim of this, is to offer a confidential and committed long-term relationship, where the mentor shares knowledge and experience, and guides the mentees career development. This scheme is aimed at helping women progress in their chosen fields and will build on encouraging aspiring individuals to take on more senior roles and responsibility in the workplace. In addition, the network holds a monthly social breakfast in Vinopolis on the first Thursday of every month at 9am through to 10am. These have proven to be very popular with lots of new faces attending each month! In a statement released by the Women’s Insurance Network, the group would like to express their utmost gratitude to the network’s main sponsors during 2023: Kroll, Admiral Insurance Gibraltar, Chubb, Intrepid Tech Ventures & Hassans. Their continued support has ensured the positive impact of the network throughout its first year. WIN would also like to thank Robus, Redsands, Collingwood & Ibex for their generous contributions and participation at the Christmas Gala, the event would not have been the success it was without their support and the network looks forward to continuing to work together with them this year.

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Gibraltar Day London Events 2023

Gibraltar’s role in the future of Crypto

An insight into the recent GFSC updates for the Insurance Industry

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Insurance

The 2024 outlook for Gibraltar’s motor insurers

By Trevor ParkerBundy, FCCA, Insurance Director, Artex Risk Solutions (Gibraltar) Limited

ooking back on 2023 we witnessed a realignment in the motor insurance market with inflationary pressures and rising costs for insurers and reinsurers leading to a significant hardening of rates. With Gibraltar based companies continuing to account for over 30% of UK motor insurance, what developments and challenges are we likely to see in 2024 and how can Gibraltar benefit from the current circumstances?

Has claims inflation peaked? It certainly seemed during 2023 that we were seeing stabilisation in supply chains following the problems wrought by Covid and Brexit. However, as we enter 2024 the disruption

brought about by conflict is increasing and the upward pressure on renewal prices may continue. Insurers will have to make a choice – do they seek to take advantage of the increased rates in 2023 and look once again for volume, or do they consolidate further and ensure the market retains profitability. Customer behaviour may also have an influence as ‘shopping around’ is driven by higher renewal prices and the incentive to switch providers lessens with lower price increases.

Impact of interest rates Current forecasts hint that interest rates will start to ease in 2024. This may have implications for the Ogden rate, the discount rates used in the calculation of claims awards Continued p24

Gibraltar International

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Gibraltar International 23

Insurance Continued from p22

be in a position to take advantage of these changes both current and prospective. Firstly, an easing of interest rates may see an uptick in the availability of capital into the insurance sector. In a search for increased yield insurance, traditionally a stable home, may attract growing investment. This could particularly be true for truly innovative brands and especially those centred around Artificial Intelligence (AI) as it begins to play a more prominent role. The advancements in AI technologies and the increased sophistication of telematics can have a huge impact on claims and the pricing of risk, and could lead to more personalized and potentially cheaper insurance options for drivers. Knowing your customer better and tailoring any add-on products specifically to individual circumstances answers questions of fairness and at the same time drives profitability and sustainability through real time assessment of the inflation and interest rate environments. Gibraltar’s government has indicated that it sees AI as a key part of the Rock’s development and this is being demonstrated with support for events such as the InsurConnect Innovation and StartUp to people who have suffered from a serious injury, which is influenced by the changes in interest rate trends. Whilst many are looking for an easing there are no guarantees and in an election year, combined with an added focus on fairness to the consumer, there may be further dialogue on splitting rates. The Government Actuary’s 2019 analysis found that investment returns are higher over time meaning those claimants with short term settlements can be exposed to significant investment risk. Differing levels of inflation in certain loss types are also a factor. A move to a dual rate, setting different rates to cater for these factors, may well be considered although agreement on how this would be achieved is likely to be difficult.

Improving consumer outcomes The focus on fair value to customers is likely

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to have other implications. The Gibraltar Financial Services Commission (GFSC) has publically stated that Consumer Duty is a focus for the coming year and fairness not just in core products but in how claims, add-ons and finance are handled will have implications for how Gibraltar insurers and intermediaries do business. There is already a drive by the Financial Conduct Authority (FCA) in the UK to ensure that additional products sold alongside the core business are seen to provide value for money and there is a real risk to be insured. In addition, with the rise in interest rates the impact on vulnerable customers especially comes into consideration.

Gibraltar’s competitive advantage If this all sounds like bad news for the motor market let us consider how Gibraltar may

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symposium which took place in January. The GFSC has started to implement its staged authorisation approach. Attracting innovative prospects and allowing them to grow in a forward thinking environment will not only maintain but grow Gibraltar’s insurance sector and not just in the motor arena. Local development of AI expertise can also play a part in the drive to diversify the Gibraltar insurance offering into other classes of business and at the same time contribute to the wider expansion of the financial services sector.

www.artexrisk.com

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Gibraltar International 25

Business

Outsourcing your payroll can offer numerous advantages to businesses of all sizes

By Daniel Pitaluga, Associate Director, and Natalie Adamberry, Chief Financial Officer, Abacus Financial Services

his strategic decision allows companies to streamline their operations and focus on their core competencies, while a specialized payroll provider

businesses with more time and resources to grow and succeed. After all, it is hardly as if payroll management is even a “once and done” process. It is, instead, one that must be

takes care of the complex and time-

carried out regularly. You might, then, have

consuming task of managing payroll

considered whether relieving yourself of

processes. By outsourcing, businesses

that regular burden, by outsourcing your

can reduce the risk of costly errors and

business’s payroll responsibilities to an

compliance issues, ensure timely and

external provider, could be a wise move. Let

accurate payments to employees, and

us, then, take a closer look at the ways in

stay up-to-date with constantly changing

which that could be the case.

tax regulations. Furthermore, it often leads to cost savings, as outsourcing

It could save you money

eliminates the need for in-house payroll

You might have been hesitant to outsource

staff, software, and infrastructure. Overall,

your payroll to another company, perhaps due

the benefits of outsourcing payroll extend

to a fear that the cost of such a service would

beyond efficiency and accuracy, providing

exceed the cost involved in keeping this part of Continued p28

26 Gibraltar International

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Shape the Solutions That Matter With Deloitte by your side, you can build confidence in shaping the solutions that will have a lasting impact on your business. We offer a wide range of services and expertise, tailored to your unique needs, to help you stay ahead of the curve and achieve your strategic goals. Take the leap into the future of business with Deloitte and discover the Deloitte Difference.

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For more details on how Deloitte handles and shares your information and for details on your rights and how to contact us, please see https://www2.deloitte.com/uk/en/legal/privacy.html

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Gibraltar International

Business Continued from p26

your organisation’s operations in-house. In truth, though, the expense and time consumed by in-house payroll management could easily become greater than it would be “on paper”. Yes, there is the “headline” price of an outsourced payroll service to think about. But if you depend on in-house staff alone, there is the cost of employing such a person – or team – to consider, as well as the further recruitment and training expenditure that could be incurred if there is a high level of staff turnover in this department of your company. By contrast, if you can find a reputable provider of outsourced payroll services, they can act as a stable presence for your organisation, managing your payroll efficiently and with minimal fuss. They will also be able to keep a sharp eye out for legislative changes, to help ensure your firm’s payroll processes adapt to these, thereby avoiding the risk of any financial penalties for non-compliance.

It will free up your personnel’s time You might have staff already within your organisation who would be capable of handling payroll processing, even though it is not their primary area of knowhow. And depending on such people may be acceptable in certain circumstances – for example, as a “stopgap” arrangement when the employee who previously handled this aspect of your firm’s operations has left without a replacement. However, this could be a far-from-ideal situation in the longer term, especially when the employee “stepping in” would contribute much greater value to your company if they had the time to take on other duties. This could be a strong motivation for you to consider outsourced payroll solutions, particularly as your business grows and

its employee numbers no longer allow for relatively makeshift or “stopgap” measures.

It will help ensure payroll accuracy and compliance As a business grows, its obligations with regard to payroll are likely to grow ever-more complex. This is without even bearing in mind the scope for legal and regulatory changes that could be easily missed by some fast-expanding companies that may have their attentions largely directed elsewhere. Even simply a failure to integrate the latest technological processes for handling payroll responsibilities could render your business less competitive in its sector, and more susceptible to costly payroll mistakes.

As a business grows, it’s obligations with regard to payroll are likely to grow ever-more complex 28

Gibraltar International

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With in-depth personal data being required for the fulfilment of payroll duties, inaccuracies could easily occur. And if they do happen, they might not only be a cause of frustration for staff or reputational damage; they could also lead to fines imposed by the Government if your organisation falls out of regulatory compliance. These are all factors that could further motivate you to investigate options for outsourcing payroll to a trustworthy thirdparty service provider – one that is able to devote time and resources into making its payroll management utterly efficient, fastidious, and accurate.

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Gibraltar International 29

Professional Bodies based in Gibraltar Association of Trust & Company Managers (ATCOM) Oliver Andlaw, Chair, Tel: + (350) 200 50418 Email: oliver@acquarius.gi Actuaries Rock Kathryn Morgan, Chair, Tel: + (350) 200 70726 Email: katmorgan62@gmail.com The Law Council Kenneth Navas, Chair, Tel: + (350) 200 69700 Email: ken@kennethnavas.com Chartered Institute of Personnel & Development (CIPD) Lesley Louise, Chair, Tel: + (350) 54428000 Email: gibraltar@cipdbranch.co.uk Gibraltar Association for New Technologies (GANT) Joey Garcia / Anthony Provasoli, Co-Chairs, Tel: + (350) 2000 1892 / (350) 200 79000 Email: joey.garcia@isolas.gi / anthony.provasoli@hassans.gi Gibraltar Association of Pension Fund Administrators (GAPFA) Lynda Martin, Chair, Tel: + (350) 200 45877 Email: lynda.martin@stmfidecs.gi Gibraltar Association of Compliance Officers (GACO) Carlos M. Martins, Chair, Tel: + (350) 222 50506 Email: info@gaco.gi Gibraltar Association of Tax Advisers (GATA) Grahame Jackson, Chair, Tel: + (350) 200 79000 Email: gibraltarata@gmail.com Gibraltar Bankers Association (GBA) Marvin Cartwright, Chair, Tel: + (350) 2000 2550 Email: marvin.cartwright@jsafrasarasin.com

Gibraltar Betting & Gaming Association (GBGA) Paul Foster, Executive Director, Tel: + (350) 54041821 Email: info@gbga.gi Gibraltar Finance Centre Council (GFCC) Shaun Cawdery, Chair, Tel: + (350) 200 03700 Email: shaun@redsands.gi Gibraltar Federation of Small Businesses (GFSB) Owen Smith, Chair, Tel: + (350) 200 47722 Email: gfsb@gfsb.gi Gibraltar Funds & Investments Association (GFIA) James Lasry, Chair, Tel: + (350) 200 79000 Email: info@gfia.gi Gibraltar Insurance Association (GIA) Paul Cole, Chair, Tel: + (350) 200 77065 Email: chair@gia.gi Gibraltar Insurance Institute (GII) Brett Bass, President, Tel: + (44) 207 0865746 Email: info@gii.gi Gibraltar Society of Accountants (GSA) Neil Rumford, President, Tel: + (350) 200 13200 Email: neil.rumford@gi.ey.com Gibraltar Electronic Money Association (GEMA) Kriya Patel, Chair, Tel: + (350) 2000 3813 Email: kpatel@transactpaymentsltd.com Society of Trust & Estate Practitioners (STEP) Peter Isola, Chair, Tel: + (350) 2000 1892 Email: peter.isola@gibraltarlawyers.com

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