BSCR Long-Term 2010 Instruction Handbook

Summary

This is a technical instruction manual issued by the Bermuda Monetary Authority explaining how to complete the Bermuda Solvency Capital Requirement (BSCR) model for long-term (life) insurers and reinsurers. It walks through each section of the BSCR template line by line, describing what data to input and how figures reconcile to the statutory financial return.

• Scope of template: Covers Company Information, Declaration, Form 4 (Statutory Balance Sheet), Form 8 (Statement of Capital and Surplus), Schedules II, III and IV for long-term business, Summary, Operational Risk, Fixed Income and Equity Investment Risk, Interest and Liquidity Risk, Long-Term Insurance Risk, Long-Term Variable Annuity Guarantee Risk, Long-Term Other Insurance Risk, and Credit Risk.
• Declaration requirement: The Declaration section must be signed by two directors and one principal representative confirming the BSCR template fairly represents the company's financial condition.
• Reconciliation: Figures entered in schedules (e.g. bonds, reserves, net amounts at risk) must reconcile to corresponding lines on Form 4 and Form 8 of the statutory financial return.
• Submission format: Companies must submit both a printed report and an electronic worksheet by the date and time deadline specified by the BMA, using the template as provided without alteration.
• Record retention: Workpapers and supporting documents used to prepare the BSCR submission should be retained and made available to the BMA for examination if requested.

The manual is guidance supporting completion of a regulatory capital model rather than a standalone rule; substantive capital requirements derive from the Insurance Returns and Solvency Regulations and related rules. It applies to long-term (re)insurers domiciled in Bermuda, including Class E, subject to the BSCR framework.

Key obligations

• Complete and submit the BSCR long-term template, including Company Info, Declaration, Form 4, Form 8, Schedules II, III and IV, and Operational Risk input sections, using the BMA-provided worksheet template without modification.
• Obtain signatures of two directors and one principal representative on the Declaration confirming the BSCR template fairly represents the company's financial condition.
• Submit both a printed report and an electronic worksheet by the date and time deadline specified by the BMA.
• Ensure figures reported in the BSCR schedules reconcile to the corresponding statutory financial return (Form 4 and Form 8) lines.
• Retain workpapers and supporting documents used to prepare the BSCR submission and make them available to the BMA upon request.
• Contact the BMA for clarification if the worksheet template's actual content or calculations differ from what is described in the manual.

Applies to

long-term (re)insurers domiciled in Bermuda, Class E (re)insurers

Deadlines

• date and time deadline specified by the BMA: Deadline by which both the printed report and electronic BSCR worksheet must be submitted to the BMA.