Notice - Consultation Paper - Guidance Note: General Business Insurers with Segregated Accounts and Separate Accounts (2024-07-04)

Summary

This is a BMA notice opening consultation on a draft Guidance Note covering General Business Insurers that use Segregated Accounts and Separate Accounts. The Guidance Note sets out the Authority's expectations for how insurance business conducted through such accounts should be structured to give policyholders protection comparable to that of policyholders in insurers not using segregated or separate accounts. It is currently a proposal, not yet final, and is open for industry comment.

• Purpose: Clarifies BMA's regulatory expectations for general business insurers operating through Segregated Account and Separate Account structures in Bermuda.
• Effective date: The Guidance Note has a proposed effective date of 1 January 2025, by which affected companies are expected to align with the standards described.
• Consultation: BMA invites the insurance industry and other interested persons to comment on the proposals by 30 September 2024, sent to RiskAnalytics@bma.bm with the subject heading Segregated Accounts and Separate Accounts.

No obligations are yet in force; this document only invites feedback on the draft guidance ahead of its intended commencement.

Applies to

General business insurers, Segregated Account companies, Separate Account companies

Deadlines

• 30 September 2024: Deadline for the insurance industry and other interested persons to submit comments on the draft Guidance Note to RiskAnalytics@bma.bm
• 1 January 2025: Proposed effective date of the Guidance Note, by which Segregated Account and Separate Account companies are expected to align with the described standards