Declaration of Compliance - General business

Summary

This is a template form used by Bermuda general business insurers to certify annual compliance with statutory insurance requirements. It is prepared under section 15A of the Insurance Act 1978 and must be signed by the insurer's directors, certifying compliance for the year ending December 31.

• Minimum criteria: Confirmation that the company has complied with all requirements of the minimum criteria applicable to it.
• Solvency margin: Confirmation of compliance with the minimum margin of solvency.
• Enhanced capital requirement: Confirmation of compliance with the applicable enhanced capital requirement (ECR).
• Regulatory conditions: Confirmation of compliance with all applicable regulatory conditions, directions, restrictions and approvals imposed on the insurer.
• Liquidity ratio: Confirmation of compliance with the minimum liquidity ratio for general business.

Where the company has not complied with any of these items, the declaration must describe the non-compliance and any remedial action taken between the relevant year-end and the filing date. The form must be signed and dated by the company's directors.

Key obligations

• Directors of a Bermuda general business insurer must complete and sign a Declaration of Compliance for each financial year confirming compliance (or non-compliance) with the minimum criteria, minimum margin of solvency, applicable enhanced capital requirement, applicable regulatory conditions/directions/restrictions/approvals, and minimum liquidity ratio for general business.
• If any area of non-compliance is identified, the declaration must include a description of the non-compliance and any remedial action taken between the relevant year-end and the filing date.

Applies to

general business insurers, insurer directors

Deadlines

• Year-Ending December 31: The declaration covers compliance for the year ending December 31 and must be completed and signed by the insurer's directors for that reporting year.