Notice - BSCR Models for 2017 Year-End Statutory Reporting and Participation on the Market Trial-Run Exercise (2018-03-29)

Summary

This notice updates insurers on the Bermuda Solvency Capital Requirement (BSCR) models used for 2017 year-end statutory reporting and the related market trial-run exercise. The Bermuda Monetary Authority (Authority) re-issued the BSCR models on 29th March 2018 to incorporate changes to the market trial-run section based on consultation feedback, though the statutory filing requirements themselves are unchanged.

• Model choice: Insurers may file either the 1st December 2017 or the 29th March 2018 BSCR model for the statutory 2017 year-end filing.
• Trial-run participation: Insurers wishing to participate in the 2017 market trial-run (strongly encouraged) must use the 29th March 2018 model.
• Annual filing timing unchanged: Annual statutory filings remain due 4 months after financial year-end (5 months for insurance groups).
• Trial-run deadline extended: The 2017 year-end market trial-run deadline has been extended to 31st May 2018 for all insurers, previously 30th April 2018 for legal entities.

The updated model and the accompanying consultation paper, Bermuda Solvency Capital Requirement Update Proposal (March 2018), are available on the Authority's website. Questions can be directed to the Authority's risk analytics team.

Key obligations

• Insurers must submit the 29th March 2018 BSCR model if they wish to participate in the 2017 market trial-run exercise.
• Annual statutory filings are still required 4 months after financial year-end (5 months for insurance groups).
• Insurers participating in the market trial-run must submit their trial-run models by the extended deadline of 31st May 2018.

Applies to

Class 4 insurers, Class 3B insurers, Class 3A insurers, Class C insurers, Class D insurers, Class E insurers, Insurance Groups

Deadlines

• 31st May 2018: Extended deadline for the 2017 year-end market trial-run submission for all insurers (previously 30th April 2018 for legal entities).
• 4 months after financial year-end (5 months for insurance groups): Standard deadline for annual statutory filings, unaffected by the trial-run extension.