Notice - Alternative Capital Schedule Filing Requirement (2018-01-22)

Summary

This notice from the Bermuda Monetary Authority introduces a new filing requirement for insurers and reinsurers that use alternative capital structures, such as catastrophe bonds, industry loss warranties, sidecars, collateralised reinsurers, longevity/mortality bonds or swaps, hybrid securities, and contingent capital instruments. It requires these entities to submit a new Alternative Capital Schedule collecting risk transfer data, starting with year end 2017 filings.

• Who is affected: All (re)insurers whose business is financed by mechanisms other than shareholders capital, including via cat bonds, industry loss warrants, sidecars, collateralised reinsurers, longevity/mortality bonds or swaps, hybrid securities, and contingent capital such as letters of credit.
• What must be filed: An Alternative Capital Schedule collecting alternative risk transfer data, to support the Authority's supervisory oversight and to produce aggregate published statistics.
• How to file: Filers using the Electronic Statutory Filing System (E-SFR) must attach the Schedule to their E-SFR submission; filers using the Bermuda Solvency and Capital Requirement (BSCR) must attach it to the BSCR template.
• Effective scope: Applies from 31 December 2017 year end filings and onwards.
• Flexibility: The Authority states it may grant an extension on filing the Schedule where warranted, upon contact with the Authority.

Key obligations

• (Re)insurers with alternative capital structures must file the new Alternative Capital Schedule starting with 31 December 2017 year end filings and onwards.
• E-SFR filers must submit the Schedule as an attachment to their E-SFR submission.
• BSCR filers must submit the Schedule as an attachment to their BSCR template.

Applies to

(re)insurers with alternative capital structures

Deadlines

• 31st December 2017 year-end filings and onwards: New Alternative Capital Schedule filing requirement takes effect from this filing period onward.