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

Summary

This is a Bermuda Monetary Authority consultation paper proposing amendments to the Insurance Act 1978 to establish a process for designating the Head of an Internationally Active Insurance Group (IAIG) for group supervision purposes. It follows a 2020 consultation that introduced the concept of IAIGs and criteria for their designation, and it invites feedback from licensed institutions and other stakeholders before any rule is finalised.

• New definition: Proposes inserting a definition of Head of the IAIG into Section 27A (Interpretation) of the Insurance Act.
• New Section 27I: Empowers the Authority, once a group is designated an IAIG under section 27H(1), to further designate one member of that group as Head of the IAIG.
• Designation criteria: The Authority will look at which member exercises control over all insurers in the group and over other members that could pose risk to the group's insurance business; a group holding company (not necessarily an insurance entity) could be chosen.
• Notice and representations: The Authority must 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.
• Consultation deadline: Comments on the proposals must be sent to policy@bma.bm no later than the close of business on 30 June 2022.

The paper is a proposal only and does not itself create binding rules; it sets out draft legislative language for stakeholder comment ahead of possible amendment to the Insurance Act.

Key obligations

• Stakeholders wishing to comment must submit views to policy@bma.bm no later than close of business on 30 June 2022.
• Under the proposed section 27I(4), a member of an IAIG that receives a designation notice may make written representations within the period specified by the Authority in that notice, which the Authority must consider before finalising the designation.

Applies to

insurers, insurance groups, internationally active insurance groups (IAIGs), licensed institutions

Deadlines

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

Related documents

• This document amends Insurance Act 1978