Further to the Bermuda Monetary Authority's ("BMA") consultations with respect to proposed enhancements to the regulatory regime for commercial insurers and insurance groups, the following legislation will become operative on 31 March 2024:
- Insurance (Prudential Standards) (Class 4 and Class 3B Solvency Requirement) Amendment Rules 2024
- Insurance (Prudential Standards) (Class 3A Solvency Requirement) Amendment Rules 2024
- Insurance (Prudential Standards) (Class C, Class D and Class E Solvency Requirement) Amendment Rules 2024
- Insurance (Prudential Standards) (Insurance Group Solvency Requirement) Amendment Rules 2024
These Amendment Rules amend the following Rules, respectively:
- Insurance (Prudential Standards) (Class 4 and Class 3B Solvency Requirement) Rules 2008
- Insurance (Prudential Standards) (Class 3A Solvency Requirement) Rules 2011
- Insurance (Prudential Standards) (Class C, Class D and Class E Solvency Requirement) Rules 2011
- Insurance (Prudential Standards) (Insurance Group Solvency Requirement) Rules 2011
The amendments include the addition of various definitions, as well as replacing existing Schedules and the addition of new Schedules. These provide for revisions to the calculations for BSCR, including a new category of man-made catastrophes, and reforms to the scenario-based approach and other technical provisions, among others.
Additionally, the BMA has also issued the following related
publications:
Guidance Notes
- Guidance Notes for Applications for Adjustments Under Section 6D of the Insurance Act; and
- Guidance Notes for Commercial Insurers and Groups Statutory Reporting Regime.
Handbook
- The Bermuda Capital and Solvency Return - 2024 Instruction Handbook for Insurance Groups; and
- Default and Downgrade Costs for the scenario based approach.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.