Insurance (Prudential Standards) (Class 3A Solvency Requirements) Amendment Rules 2022

Summary

This is a BMA consultation notice on proposed amendments to the Insurance (Prudential Standards) (Class 3A Solvency Requirement) Rules 2011. The draft amendment would insert a new Schedule IVF, 'Schedule of Risk Exposure', requiring Class 3A insurers to report detailed risk exposure data by jurisdiction. The Authority is inviting industry comment before finalising the rule.

• New reporting schedule: Class 3A insurers would be required to complete Schedule IVF, disclosing risk exposures relating to subsidiaries, gross premium written, reinsurance retroceded, net premium written, gross incurred losses and gross reserves at year end, broken down by jurisdiction of risk (including EU member states, Bermuda, UK, Switzerland, US, Canada, China, Japan, Hong Kong, Australia and other locations).
• Reporting basis: Insurers would report the jurisdiction of their ultimate parent company and would be required to report all amounts on a consolidated basis only.
• Rule text change: Paragraph 6 of the principal Rules would be amended to add a reference to the new Schedule IVF alongside existing Schedule IVE.
• Proposed effective date: The amendments are proposed to take effect from 1 July 2022, subject to the outcome of the consultation.

As a consultation document, the rules are not yet in force; the obligations described are proposed and may change before finalisation. Comments were due to the Authority by 16 January 2022 via riskanalytics@bma.bm.

Key obligations

• If finalised as proposed, Class 3A insurers would be required to complete and submit Schedule IVF disclosing risk exposure data (subsidiaries, gross premium written, reinsurance retroceded, net premium written, gross incurred losses, gross reserves) by jurisdiction for each financial period.
• Amounts reported on Schedule IVF must be reported on a consolidated basis only.
• Interested parties were required to submit comments on the proposed Rules to the BMA by 16 January 2022.

Applies to

Class 3A insurers

Deadlines

• 16 January 2022: Deadline for submitting comments on the proposed Amendment Rules to riskanalytics@bma.bm
• 1 July 2022: Proposed effective date for the Amendment Rules and new Schedule IVF reporting requirement

Related documents

• This document amends Insurance (Prudential Standards) (Class 3A Solvency Requirement) Rules 2011