2022 IIGB Handbook

Summary

This is the Bermuda Monetary Authority's 2022 Instruction Handbook for the Innovative Insurer-General Business (IIGB) capital and solvency return. It is a technical guidance and form-completion document, not a standalone rule, explaining how Class IIGB insurers must prepare and submit their annual capital and solvency return, including the Bermuda Solvency Capital Requirement (BSCR) model used to calculate the Enhanced Capital Requirement (ECR) and Target Capital Level (TCL).

• Annual filing: Every IIGB insurer must submit a completed capital and solvency return to the BMA on or before its prescribed filing date, using the BSCR model.
• Electronic and printed submission: For 2019 year-end and beyond insurers may file electronically only via the embedded submit macro; otherwise both an electronic and a printed copy must be forwarded to the BMA.
• Company and structure information: Insurers must complete the Insurer Information Sheet, including organisational structure, ownership, group membership, segregated accounts status, and certificate of registration conditions.
• Declaration and sign-off: The capital and solvency return declaration must be signed and dated by two directors and the insurer's principal representative and attached to the submission.
• Corrective action disclosure: Where an insurer answers negatively on minimum solvency margin, minimum liquidity ratio, or condition compliance questions, it must state the reason and describe any corrective action taken.
• Record retention: Insurers must retain work papers and supporting documents used to prepare the BSCR submission and make them available to the BMA on request.
• BSCR schedules and risk return content: The return includes numerous statutory statements and schedules covering investments, reinsurance, currency risk, concentration risk, digital assets, catastrophe risk and risk management, which insurers must complete in full.

The handbook itself does not set new capital thresholds but operationalises requirements under the Insurance Act 1978 and related Prudential Standard Rules, guiding insurers on how to compute and report figures the BMA uses to monitor solvency and capital adequacy.

Key obligations

• Every IIGB insurer must submit a completed capital and solvency return to the BMA on or before its filing date.
• Insurers must complete the Insurer Information Sheet in its entirety, including company, ownership, and regulatory approval details.
• The capital and solvency return declaration must be signed and dated by two directors and the insurer's principal representative and included in the attachments.
• Insurers answering negatively to solvency margin, liquidity ratio, or condition compliance questions must state reasons and describe corrective action taken.
• Insurers must retain work papers and supporting documents used to prepare the BSCR submission for examination by the BMA if requested.
• Insurers filing only electronically must submit via the embedded 'submit' macro in the BSCR model; otherwise both electronic and printed versions must be forwarded to the BMA.
• Insurers must not alter or modify the capital and solvency return form.

Applies to

IIGB insurers, Class IIGB insurers

Deadlines

• on or before its filing date: Annual capital and solvency return (BSCR/IIGB return) must be submitted to the BMA by the insurer's specified filing date.