Notice - 2022 Legislative Changes (2021-12-15)

Summary

This notice from the Bermuda Monetary Authority announces proposed amendments to the Insurance Act 1978 (via an Insurance Amendment No.1 Act 2022) and to the Insurance (Prudential Standards) Amendment Rules 2022. It outlines the substance of the proposed changes and invites industry comment before the amendments are finalised.

• Insurance Act 1978 changes: Proposed updates to supervisory requirements relating to the winding-up of composite insurers, plus various housekeeping amendments.
• New Schedule IVF Risk Exposure: All insurance groups and Class 4, 3B, 3A, C, D and E insurers would be required to submit a new Schedule IVF disclosing risk exposures such as number of subsidiaries, general business gross premium written, gross losses incurred and reserve details for the financial period.
• Quarterly returns for long-term insurers: Long-term Classes C, D and E insurers would be required to provide a quarterly return within two months after each quarter end.
• Expanded quarterly return content: Insurance groups and Class 4 and 3B insurers would need to include Enhanced Capital Requirement ratio, Commercial Insurers Solvency Self-Assessment requirement, Bonds by Bermuda Solvency Capital Requirement rating, and catastrophe risk exposure details in their quarterly returns.

Full details of the proposed amendments are available on the BMA website's discussion and consultation papers page. The Authority is inviting comments on these proposals, to be submitted by email to riskanalytics@bma.bm before the amendments are finalised.

Key obligations

• Stakeholders wishing to comment on the proposed legislative and rule changes must submit comments to riskanalytics@bma.bm by 16 January 2022.
• Once enacted, insurance groups and Class 4, 3B, 3A, C, D and E insurers would need to submit a new Schedule IVF Risk Exposure disclosure.
• Once enacted, long-term Classes C, D and E insurers would need to file a quarterly return within two months after each quarter end.
• Once enacted, insurance groups and Class 4 and 3B insurers would need to include additional specified metrics in their quarterly returns.

Applies to

insurance groups, Class 4 insurers, Class 3B insurers, Class 3A insurers, Class C insurers, Class D insurers, Class E insurers, composite insurers, long-term insurers

Deadlines

• 16 January 2022: Deadline for submitting comments on the proposed Insurance Amendment No.1 Act 2022 and Insurance (Prudential Standards) Amendment Rules 2022 to riskanalytics@bma.bm.
• within two months after quarter end: Proposed requirement for long-term Classes C, D and E insurers to file a quarterly return.