Draft Insurance Accounts Amendment Regulations 2009

Summary

This is a draft amendment to the Insurance Accounts Regulations 1980, circulated by Bermuda's Ministry of Finance (via the BMA consultation process) for comment. It would revise several disclosure schedules used in statutory financial statements that insurers file under the Insurance Act 1978. As a draft, it is not yet in force and its provisions are subject to change before finalisation.

• Schedule I amendment: Replaces paragraph 28 dealing with the line item Insurance and Reinsurance Payable.
• Schedule III amendment: Deletes paragraph 32(b) and replaces paragraph 34 to require separate disclosure of funds held under reinsurance contracts as affiliated, non-affiliated, and total of both.
• Schedule II amendment - Sundry assets: Replaces paragraph 13 to require disclosure of the nature and terms of sundry assets, a description of derivatives policies, and the market value and nominal exposure of any derivative exceeding 5% of total assets, split between long and short positions.
• Schedule II amendment - Sundry liabilities: Replaces paragraph 36 with equivalent disclosure requirements for sundry liabilities, including nature, repayment terms, and derivative exposure disclosures over the 5% threshold.

The draft states a commencement date of 31 December 2009, though this is contingent on the Regulations being finalised and made in that form. Compliance officers at affected insurers should monitor the consultation outcome for any changes before the final Regulations are issued.

Key obligations

• If enacted, insurers would need to disclose funds held under reinsurance contracts separately as affiliated and non-affiliated amounts plus their total (Schedule III, paragraph 34)
• If enacted, insurers would need to disclose the nature and terms of sundry assets and, for derivatives with nominal exposure over 5% of total assets, market value and exposure split between long and short positions (Schedule II, paragraph 13)
• If enacted, insurers would need to disclose the nature and repayment terms of sundry liabilities and equivalent derivative exposure information for exposures over 5% of total assets (Schedule II, paragraph 36)

Applies to

insurers subject to the Insurance Act 1978 and Insurance Accounts Regulations 1980

Deadlines

• 31 December 2009: Stated commencement date in the draft Regulations, by which the amendments would come into operation if made in this form

Related documents

• This document amends Insurance Accounts Regulations 1980