2024 Interim General Business Handbook

Summary

This is the BMA's 2024 Interim Instruction Handbook for the Bermuda Capital and Solvency Return (the BSCR model), applicable to Class 4, Class 3B and Class 3A insurers (with references also to Class E, Class D, Class C insurers and Insurance Groups). It explains how to complete and submit the annual capital and solvency return used to calculate an insurer's Enhanced Capital Requirement (ECR) and Target Capital Level (TCL) under Prudential Standard Rules made under section 6A of the Insurance Act 1978. The document is instructional rather than a standalone rule, but it restates and operationalises existing statutory filing and disclosure obligations.

• Annual filing: Every Class 4, 3B, 3A, E, D and C insurer and Insurance Group must submit a completed capital and solvency return to the BMA on or before its filing date, using the BSCR model.
• Submission method: Insurers filing electronically may submit solely via the embedded 'submit' macro; otherwise both electronic and printed versions must be forwarded to the BMA.
• Declarations: The capital and solvency return declaration must be signed and dated by two directors (one may be the CEO) plus the CRO or CFO for Class 4 and 3B insurers, or by two directors and the principal representative for Class 3A insurers.
• Supporting attachments: Insurers must attach audited financial statements, the signed Declaration of Compliance under section 15A of the Act, and the Financial Condition Report required under section 3 of the Insurance (Public Disclosure) Rules 2015.
• Record retention: Work papers and supporting documents used to prepare the BSCR submission must be retained and made available to the BMA on request.
• 2024 methodology transition: For 2024 year-end, insurers must complete both the 2023 and 2024 year-end BSCR methodologies unless they obtain BMA permission (via email to RiskAnalytics@bma.bm) to apply the 2024 methodology only.

The bulk of the handbook (not fully reproduced here) provides line-by-line guidance for completing each schedule and form within the BSCR model, including risk schedules, eligible capital, catastrophe risk, and a glossary of defined terms; these sections are technical completion instructions rather than independent legal obligations.

Key obligations

• Every Class 4, Class 3B, Class 3A, Class E, Class D and Class C insurer and Insurance Group must submit a completed capital and solvency return to the BMA on or before its filing date.
• Insurers must not alter or modify the capital and solvency return form itself.
• The capital and solvency return declaration must be signed by two directors (one may be CEO) and either the CRO or CFO for Class 4 and 3B insurers, or by two directors and the principal representative for Class 3A insurers, and included as an attachment.
• Insurers must attach general purpose financial statements (audit report, statements and notes) as one document, a signed Declaration of Compliance under section 15A of the Insurance Act 1978, and the Financial Condition Report required under section 3 of the Insurance (Public Disclosure) Rules 2015.
• Work papers and documents used to prepare the BSCR submission must be retained and made available to the BMA on request.
• For 2024 year-end, insurers must complete both the 2023 and 2024 year-end BSCR methodologies unless they apply to the BMA (via RiskAnalytics@bma.bm) for permission to use only the 2024 methodology.

Applies to

Class 4 insurers, Class 3B insurers, Class 3A insurers, Class E insurers, Class D insurers, Class C insurers, Insurance Groups

Deadlines

• on or before its filing date: Each insurer/Insurance Group must submit its completed capital and solvency return to the BMA.
• 2024 year-end: Insurers must complete both the 2023 and 2024 year-end BSCR methodologies unless BMA permission is granted to use only the 2024 methodology.