Notice - Bermuda Long-term Insurance Market Reports (2024-08-30)

Summary

This is an informational notice from the Bermuda Monetary Authority announcing a new series of reports on the Bermuda Long-term (re)insurance market. It follows earlier BMA publications on Private Equity insurers and the first Long-term Insurance Market Analysis and Stress Testing Report, and explains the background, purpose and interconnection of three upcoming reports. It does not create new regulatory requirements for firms.

• Report 1: Liquidity Risk in the Bermuda Long-term Insurance Market, published on the notice date, 30 August 2024.
• Report 2: Collateral Structures in the Bermuda Long-term Insurance Market, to be published in September 2024.
• Report 3: Private Credit, Direct Loans, Collateralized Loan Obligations (CLOs), and Private Placements, to be published in September 2024.

The notice provides context on the growing global pension protection gap, the rise of strategic alliances between long-term insurers and asset management firms, and the associated governance, liquidity and credit risks. The BMA states it will continue publishing additional reports in due course as part of this ongoing transparency series.

Applies to

Long-term (re)insurers in Bermuda, Private Equity insurers

Deadlines

• 30 August 2024: Publication of the first report, Liquidity Risk in the Bermuda Long-term Insurance Market.
• September 2024: Planned publication of the second report, Collateral Structures in the Bermuda Long-term Insurance Market.
• September 2024: Planned publication of the third report, Private Credit - Direct Loans, CLOs, and Private Placements.