Notice - Insurance (Prudential Standards) (Class 3A Solvency Requirement) Amendment Rules 2014 (2014-06-18)

Summary

This is a BMA consultation notice proposing amendments to Schedule V (Schedule of Risk Management) of the Insurance Prudential Standards Rules, specifically affecting Class 3A insurers. The proposed change adds a new disclosure category for mutual fund holdings within the risk management schedule that insurers must file with the Authority.

• New disclosure item: A new paragraph (k) is added to Schedule V requiring Class 3A insurers to disclose mutual fund details as part of their schedule of risk management.
• Content of disclosure: The mutual fund disclosure must include the name, type, and amount of each mutual fund reported by the insurer under Form 1A, Lines 2(a), 2(c)(iii), 3(a) and 3(c)(iii).
• Purpose: The Authority states the additional detail is needed to assess how mutual fund holdings may affect the insurer's risk management programme.
• Consultation process: The Authority invited written comments on the proposed Rules, to be sent to policy@bma.bm, by 5th September 2014.
• Proposed effective date: The Authority proposed that all amendments become effective from 1st January 2015.

As a consultation document with draft status, the Rules described are proposals only and were not yet in force at the time of this notice; the summary reflects the proposed requirements as described by the Authority, not confirmed final rules.

Key obligations

• Once finalised, Class 3A insurers would be required to disclose the name, type, and amount of each mutual fund held, as part of their Schedule V risk management disclosures, cross-referenced to Form 1A Lines 2(a), 2(c)(iii), 3(a) and 3(c)(iii).
• Interested parties wishing to comment on the proposed amendment rules must submit comments to policy@bma.bm by 5th September 2014.

Applies to

Class 3A insurers

Deadlines

• 5th September 2014: Deadline for submitting comments on the proposed Insurance (Prudential Standards) (Class 3A Solvency Requirement) Amendment Rules 2014 to policy@bma.bm.
• 1st January 2015: Proposed effective date for the amendments to Schedule V introducing the mutual fund disclosure requirement for Class 3A insurers.