Consultation Paper - Proposed Phased Introduction of a Resolution Regime for the Bermuda Commercial Insurance Sector (2026-09-15)

Summary

This is a BMA consultation paper proposing the first phase of a new resolution regime for Bermuda's commercial insurance sector, intended to give the Authority tools to manage insurers that become non-viable. It sets out three foundational building blocks the BMA plans to legislate, and invites industry feedback before any rules are finalised.

• Resolution Authority: BMA proposes to designate itself as the Resolution Authority (RA) for insurance sector entities, via amendment to the BMA Act 1969, with internal governance safeguards to separate resolution and supervisory functions.
• Resolution objectives: Proposed objectives are protecting policyholders, protecting Bermuda's financial stability, minimising use of public funds, protecting client assets, and maintaining market confidence, to be enacted via legislative amendment.
• Scope of entities: The regime as currently proposed would apply to commercial insurers registered as Class 3A, 3B, 4, C, D, E, and insurance groups for which BMA is group supervisor, to be enacted through amendment to the Insurance Act 1978.
• Future phases: Resolution powers, tools, planning requirements, cross-border cooperation and safeguards are explicitly out of scope of this paper and will be addressed in later consultation phases.

No rules take effect from this paper itself; it is a consultation seeking stakeholder views on four specific questions (BMA acting as RA, resolution objectives, scope of insurers and resolution planning criteria, and practical implementation issues). Comments are due by 15 December 2026, after which BMA will use feedback to shape subsequent legislative proposals.

Applies to

commercial insurers (Class 3A, 3B, 4, C, D, E), insurance groups for which BMA is group supervisor, reinsurers

Deadlines

• Tuesday, 15 December 2026: Deadline for stakeholders to submit written comments/feedback on the consultation paper to policy@bma.bm