Bermuda has always provided an efficient process for insurance submissions of all classes, with applications being approved in under two weeks. On 20 August 2021, the Bermuda Monetary Authority (the "BMA" or the "Authority") issued a notice announcing that enhancements have been made to allow further streamlining of the registration process for Restricted Special Purpose Insurers ("R-SPI"). Now, the licensing and registration processes of R-SPI registrants whose business model is to issue bonds (e.g. catastrophe bonds and mortgage bonds) will be consolidated and registrants can be fully registered by the BMA within three business days.
Previously, the same process applied to R-SPI as any other class with in-principle approval available within five business days, provided an application is submitted by 5pm on a Monday in any working week. Now an R-SPI application can be initiated electronically on any business day before 5pm, reducing that five day process to three. This new streamlined three business-day initiative is focused on meeting the needs of the continually evolving and expanding Insurance Linked Securities (ILS) market in Bermuda, further solidifying Bermuda as a global ILS market leader. As a result of the hardened market and the continued increase in the availability of capital this is a significant regulatory enhancement removing even more friction from the process and facilitating the swift introduction of ILS transactions to market, as demanded by investors. The change places Bermuda further ahead of other competing jurisdictions as a result of the speed at which the BMA can now register new catastrophe bond vehicles.
This amendment to the registration process is yet another example of the BMA adapting to market demands, to ensure Bermuda remains a market leader in the (re)insurance industry. The BMA is a well-respected financial markets regulator, a reputation which extends beyond Bermuda, and has been earned in part through the BMA's ability to innovate and collaborate with market participants.
Walkers (Bermuda) Limited, along with its corporate services provider, Walkers Corporate (Bermuda) Limited, is experienced and well-equipped to assist clients with the filing of R-SPI applications, and applications for any other SPI, collateralized insurer, intermediary or innovative license class.
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