Insurance Returns and Solvency Amendment Regulations 2013 (draft/consultation)

Summary

This is a Bermuda Monetary Authority consultation notice, with an attached draft, proposing the Insurance Returns and Solvency Amendment Regulations 2013. It seeks to amend the Insurance Returns and Solvency Regulations 1980 to enhance and consolidate the statutory financial return filed by Class 1, 2, 3, A, B and Special Purpose insurers, and to make other housekeeping changes. The Authority is inviting comments on the draft before finalising it.

• New/replaced schedules: Introduces an enhanced Insurer Information sheet, a consolidated Annual Statutory Return Declaration (replacing the separate General Business, Long-Term Business and Special Purpose Business Solvency Certificates), a Statement of Changes of Control, an Own Risk Assessment, and schedules for Underwriting Analysis, Collateral Analysis, Detailed Premium Information, Support for Balance Sheet, Support for Income Statement, and Segregated Accounts.
• Repeals: Removes the requirement to file a Declaration of Statutory Ratios (Regulation 13) and repeals Schedule II, which was used to calculate those ratios, as the Authority no longer uses this information.
• Consequential amendments: Regulations 5, 7, 8, 9, 9A and 10 of the principal Regulations are amended to add the new schedules, remove references to the repealed statutory ratios declaration, and adjust cross references (e.g. adding figure D to Regulation 10).
• Timing: The draft Regulations state a commencement date of 1 March 2014, and the Authority expects all amendments to be in force before insurers file their statutory financial returns for financial year 2013, with the next filing date being 30 June 2014.

Because this document is a draft consultation rather than a finalised instrument, none of the described filing changes are yet legally binding; they describe what Class 1, 2, 3, A, B and Special Purpose insurers will be required to submit once the Regulations are made and come into force.

Key obligations

• Once in force, Class 1, 2, 3, A, B and Special Purpose insurers must submit the new consolidated Annual Statutory Return Declaration, Insurer Information sheet, Statement of Changes of Control, Own Risk Assessment, and the various Underwriting Analysis, Collateral Analysis, Detailed Premium Information, Support for Balance Sheet, Support for Income Statement and Segregated Accounts schedules as part of their statutory financial return.
• Once in force, insurers will no longer need to file the Declaration of Statutory Ratios, as Regulation 13 and Schedule II are repealed.
• Interested parties wishing to comment on the draft Regulations must send comments to policy@bma.bm by 31 January 2014.

Applies to

Class 1 insurers, Class 2 insurers, Class 3 insurers, Class A insurers, Class B insurers, Special Purpose insurers

Deadlines

• 31st January 2014: Deadline for interested parties to submit comments on the proposed draft amendments to policy@bma.bm.
• 1 March 2014: Commencement date stated in the draft Regulations for when they would come into operation.
• 30th June 2014: Next statutory financial return filing date, by which the amendments are expected to be in force for the 2013 financial year filings.

Related documents

• This document amends Insurance Returns and Solvency Regulations 1980