Consultation Paper - Proposed Amendments to Insurance Code of Conduct, Insurance (Group Supervision) Rules 2011 and Insurance (Prudential Standards) (Insurance Group Solvency Requirement) Rules 2011 (2026-06-09)

Summary

This is a Bermuda Monetary Authority consultation paper proposing amendments to the Insurance Code of Conduct, the Insurance (Group Supervision) Rules 2011 and the Insurance (Prudential Standards) (Insurance Group Solvency Requirement) Rules 2011. It covers three separate but related strands of reform and invites industry feedback before the rules are finalised. Nothing in the document is yet binding; it is a draft consultation with illustrative draft rules attached.

• Prudent Person Principle (PPP): Consequential amendments to the Code (sections on investment/liquidity/concentration risk, credit risk, self-assessment and outsourcing) and to the Group Rules (rules 5, 12, 13 and 15) to align with the Authority's earlier Guidance on the PPP.
• Group supervision enhancements: Amendments to the Group Rules (rules 2, 18, 21 and new rule 33) and to the Group Solvency Rules (rules 2 and 3, and new rule 9A), largely to reflect the introduction of designated insurance holding companies following the Insurance Amendment (No.2) Act 2025.
• Conduct of Business (COB) scope expansion: Proposes to extend Part 8 (Conduct of Business) of the Code beyond domestic retail insurers to cover all Bermuda-registered insurers that write retail business directly to individual policyholders, wherever those policyholders are located, while excluding foreign affiliates and insurance groups.

The Authority is seeking stakeholder feedback on all three sets of proposed changes, with comments due by close of business on 27 July 2026 to riskanalytics@bma.bm. Effective and compliance dates differ by strand: the PPP-related Code and Group Rules amendments take effect on issuance with compliance expected by 31 December 2026; the group supervision enhancements to the Group Rules and Group Solvency Rules will come into operation 180 days after publication of the final rules; and the COB scope expansion takes effect on final issuance of the Code, with in-scope insurers given 180 days from that publication to comply.

Key obligations

• In-scope insurers (Classes 3A, 3B, 4, C, D and E, including reinsurers) must be compliant with the PPP-related amendments to the Code by 31 December 2026
• Insurance groups for which the BMA is group supervisor are expected to comply with the PPP-related amendments to the Group Rules by 31 December 2026
• Insurers and insurance groups must comply with the group supervision enhancement amendments to the Group Rules and Group Solvency Rules within 180 days of publication of the final draft rules
• Bermuda-registered insurers writing retail business directly to individual policyholders (wherever located) will be required to comply with expanded Conduct of Business provisions in Section 8 of the Code within 180 days of final publication
• Stakeholders wishing to comment on the proposals must submit feedback to riskanalytics@bma.bm by close of business 27 July 2026

Applies to

insurers (Classes 3A, 3B, 4, C, D and E, including reinsurers), insurance groups for which the BMA is group supervisor, designated insurance holding companies, insurers writing retail business directly to individual policyholders, intermediaries (insurance agents and brokers, indirectly via insurer monitoring obligations)

Deadlines

• 27 July 2026: Deadline for stakeholders to submit comments on the consultation paper to riskanalytics@bma.bm
• 31 December 2026: Compliance deadline for in-scope insurers and insurance groups with the Prudent Person Principle amendments to the Code and Group Rules
• 180 days from publication of the final Group Rules and Group Solvency Rules: Coming into operation of the group supervision enhancement amendments
• 180 days from final publication of the Code: Compliance deadline for in-scope insurers with the expanded Conduct of Business provisions in Section 8 of the Code

Related documents

• This document amends Insurance (Group Supervision) Rules 2011