Notice - Insurance (Prudential Standards)(Class 4 and 3B 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, adding a new mutual fund disclosure requirement applicable to Class 4 and Class 3B general business insurers. The Authority invited public comment before finalising the rule change.

• New disclosure item: Adds new paragraph (l) to Schedule V requiring Class 4 and 3B insurers to disclose additional details about mutual funds used, so the Authority can assess impact on the insurer's risk management programme.
• Content of disclosure: The mutual fund disclosure must include the name, type and amount of each mutual fund, as reflected in Form 1A Lines 2(a), 2(c)(iii), 3(a) and 3(c)(iii).
• Consultation period: Comments on the proposed Rules were invited from insurers and other stakeholders, to be sent to policy@bma.bm by 5th September 2014.
• Proposed effective date: The Authority proposed that all amendments become effective as of 1st January 2015.

The full amended Schedule V text (including the new paragraph l and related instructions) is reproduced in the notice, alongside the existing risk management disclosure items and BSCR rating tables, for context on how the mutual fund item fits within the broader schedule.

Key obligations

• Class 4 and 3B general business insurers, once the amendment takes effect, must disclose in their Schedule of Risk Management the name, type and amount of each mutual fund used, as reflected in Form 1A Lines 2(a), 2(c)(iii), 3(a) and 3(c)(iii).
• Stakeholders wishing to comment on the proposed Rules must submit comments to policy@bma.bm by 5th September 2014.

Applies to

Class 4 insurers, Class 3B insurers

Deadlines

• 5th September 2014: Deadline for submitting comments on the proposed Rules to policy@bma.bm
• 1st January 2015: Proposed effective date for all amendments to the Rules