Cancellation of Registration - Economic Risk Insurance, Ltd (2021-01-05)

Summary

This is a Bermuda Monetary Authority (BMA) enforcement notice announcing that it has cancelled the insurance registration of Economic Risk Insurance, Ltd., a Class 3 insurer, under section 41(1)(b)(ii), (iv) and (v) of the Insurance Act 1978. The notice is informational, documenting a completed regulatory action rather than imposing new ongoing requirements on other entities.

• Grounds for cancellation: The BMA found the Company breached the Insurance Act in four key areas
• No business conducted: The Company had not conducted any business within two years of its registration
• Unpaid fees: The Company failed to pay annual fees and late payment fees due for 2019 and 2020
• No principal representative: The Company did not maintain a principal representative
• Missing financial returns: The Company failed to file Statutory Financial Returns for the years ended 31 December 2015 through 2019 inclusive

The BMA states it gave the Company significant opportunities to remedy these breaches before proceeding with cancellation, citing the need to safeguard potential clients and concerns about systemic weaknesses in the Company's internal controls.

Applies to

Class 3 insurer, insurers