Notice - Insurance (Group Supervision) Amendment Rules 2015 (2015-01-22)

Summary

This is a Bermuda Monetary Authority notice publishing draft Insurance (Group Supervision) Amendment Rules 2015 for consultation. The amendments would implement the Economic Balance Sheet Framework proposed in a December 2014 consultation paper, moving insurance group reporting from a statutory basis to a statutory economic capital and surplus basis.

• New definitions: Introduces definitions for statutory economic balance sheet and insurance technical provisions, replacing the prior insurance reserves concept.
• Eligible Capital schedule: Amends paragraph 21 so the Eligible Capital schedule is completed on a statutory economic capital and surplus basis, with cross references to Schedule XIV of the Insurance (Prudential Standards) (Insurance Group Solvency Requirement) Rules 2011.
• Group actuary opinion: Proposes amending Schedule 2 and repealing and replacing paragraph 27 so the group actuary must submit an annual actuarial opinion under the Insurance (Prudential Standards) (Insurance Group Solvency Requirement) Rules 2011 rather than under the Group Supervision Rules.
• Date update: Updates a transitional reference date in paragraph 21 from January 1, 2024 to January 1, 2026.

The Authority invited public comments on the draft Rules and proposed that the amendments, once finalised, would commence on 31 December 2016. As a consultation notice, the Rules were not yet in force at the time of publication.

Key obligations

• Interested parties were invited to submit comments on the draft Rules to policy@bma.bm by 27th February 2015.
• Once in force, insurance groups subject to the Insurance (Group Supervision) Rules 2011 would be required to report to the Authority on a statutory economic capital and surplus basis.
• Once in force, the group actuary would be required to submit an annual actuarial opinion in accordance with Schedule XV of the Insurance (Prudential Standards) (Insurance Group Solvency Requirement) Rules 2011.

Applies to

insurance groups, group actuaries

Deadlines

• 27th February 2015: Deadline for submitting comments on the draft Insurance (Group Supervision) Amendment Rules 2015 to policy@bma.bm.
• 31st December 2016: Proposed commencement date for the amendment Rules once finalised.

Related documents

• This document amends Insurance (Group Supervision) Rules 2011