Notice - BSCR Models for 2018 Year-end Reporting - Currency Risk for 2019 Methodology (2019-01-22)

Summary

This BMA notice alerts insurers that on 22 January 2019 the Authority re-published corrected BSCR (Bermuda Solvency Capital Requirement) models for 2018 year-end reporting, after discovering a formula error affecting the currency risk calculation under the 2019 methodology for insurers with multiple currencies.

• Who is affected: Groups, Class 4, Class 3B, Class 3A, Class E, Class D and Class C insurers submitting BSCR models for 2018 year-end reporting.
• The issue: A formula error was found in the previous models specifically for insurers opting into the 2019 methodology calculation who have multiple currencies.
• Who must switch models: Insurers wishing to use the 2019 methodology and having multiple currencies should use the newly re-published (corrected) models.
• Who can continue as before: Insurers not participating in the 2019 methodology, or without multiple currencies, may keep using the earlier models released on 2 January 2019.
• Practical tools: Insurers can use the Import/Export tabs to transfer data into the revised models, with instructions in the Capital and Solvency Return Instruction Handbooks.
• Contact: Questions about the models or the BSCR return should be directed to riskanalytics@bma.bm.

The notice is purely operational, correcting a technical error in reporting tools rather than changing substantive capital or solvency requirements.

Key obligations

• Insurers wishing to participate in the 2019 methodology calculation with multiple currencies must use the re-published (corrected) BSCR models rather than the earlier versions containing the formula error.
• Insurers using the corrected models should use the Import/Export tabs to transfer data, following the Capital and Solvency Return Instruction Handbooks.

Applies to

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