Consultation Paper - Designating the Head of an Internationally Active Insurance Group (2022-05)

Summary

This is a Bermuda Monetary Authority consultation paper proposing amendments to the Insurance Act 1978 that would give the Authority power to designate the head of an Internationally Active Insurance Group (IAIG) for group supervision purposes. It follows a 2020 consultation that introduced the IAIG concept and criteria for identifying such groups, and sets out a proposed process for determining which entity within an IAIG structure should be treated as its head.

• New definition: Proposes inserting a definition of Head of the IAIG into Section 27A (Interpretation) of the Insurance Act.
• New Section 27I: Proposes a new section empowering the Authority to designate a member of an IAIG as its Head after the group itself has been designated an IAIG under section 27H(1).
• Designation criteria: The Authority would have regard to which member exercises control over all insurers in the group and over other members that may pose risk to the group's insurance business; a group holding company, not necessarily an insurance legal entity, could be designated.
• Notice and representations: The Authority would give written notice of its intention to designate a member as Head of the IAIG and must consider any written representations from that member within a period specified in the notice before finalising the designation.

This is a draft consultation, not a final rule. The Authority invited licensed institutions and other stakeholders to comment on the proposals by sending views to policy@bma.bm no later than 30 June 2022.

Key obligations

• Stakeholders wishing to respond must submit written comments on the proposals to policy@bma.bm no later than close of business on 30 June 2022

Applies to

Internationally Active Insurance Groups (IAIGs), licensed insurance institutions

Deadlines

• 30 June 2022: Deadline for stakeholders to submit comments on the consultation paper to policy@bma.bm

Related documents

• This document amends Insurance Act 1978