Notice - Insurance (Prudential Standards) (Class E Solvency Requirement) Amendment Rules 2012

Summary

This is a Bermuda Monetary Authority (BMA) notice, dated 19 June 2012, circulating draft amendment rules to the Insurance (Prudential Standards) (Class E Solvency Requirement) Rules 2011. The draft would extend enhanced capital and solvency reporting, previously applicable only to Class E long-term insurers, to Class C and Class D long-term insurers, and would re-title the principal Rules to reference all three classes. The document is a consultation draft, not yet in force, and the Authority invited industry comment before finalising the text.

• Title change: The principal Rules would be re-titled the Insurance (Prudential Standards) (Class C, Class D and Class E Solvency Requirement) Rules 2011.
• Class C insurers: Would be newly required to submit a capital and solvency return prepared in accordance with a new Schedule XIII, which sets out the Class C Bermuda Solvency Capital Requirement (BSCR) formula and associated capital factor tables.
• Class D insurers: Would be required to submit the same capital and solvency return as currently applies to Class E insurers.
• Schedule I and paragraph amendments: Various paragraphs and Schedule I of the principal Rules would be amended to insert references to Class C and Class D alongside Class E.
• Commencement: The notice states the Rules are proposed to take effect from 1 January 2013, while the attached draft rule text itself specifies commencement on 31 December 2012 — readers should check the final made version for the confirmed date.

As a consultation notice, the document itself does not impose binding obligations; it sets out proposed changes and requests stakeholder comments by a stated deadline before the rules are finalised and made.

Key obligations

• Comments on the draft Rules must be submitted to policy@bma.bm by 15 August 2012
• Once made, Class C long-term insurers would be required to submit a capital and solvency return in accordance with Schedule XIII
• Once made, Class D long-term insurers would be required to submit the same capital and solvency return as Class E insurers

Applies to

Class C long-term insurers, Class D long-term insurers, Class E long-term insurers

Deadlines

• 15th August 2012: Deadline for submitting comments on the draft Rules to policy@bma.bm
• 1st January 2013: Date stated in the notice on which the Rules are said to become effective
• 31 December 2012: Commencement date stated in the draft rule text itself (Rule 10)