Notice - BSCR Update Proposal - Draft Rules for Field Testing (2017-04-21)

Summary

This is a short informational notice from the Bermuda Monetary Authority updating the timeline for its Bermuda Solvency Capital Requirement (BSCR) Update Proposal. Instead of publishing the promised draft Insurance (Prudential Standard) Amendment Rules by 21 April 2017, the Authority has posted instructions that will form the basis of those draft Rules, intended solely to help the market field test the technical measures described in the consultation paper.

• Scope of draft Rules: Covers Class 4 and 3B insurers, Class C, D and E insurers, Class 3A insurers, and insurance groups.
• Immediate action: Instructions (not final draft Rules) posted on 21 April 2017 for voluntary field testing of proposed technical measures.
• Further consultation: Additional technical measures and related requirements to be consulted on during the third quarter of 2017, compiling all proposed changes to the Insurance Prudential Standard Rules.
• Draft rules timing: Draft rules connected to that further consultation are expected to be posted before the end of 2017.
• Final rules: The final version of the Rules to be adopted is proposed for publication on the Authority's website on 31 July 2018.

The notice is informational and does not itself impose new compliance obligations; it invites market participants to use the posted instructions for optional field testing ahead of the formal rule-making process. Questions can be directed to the Authority's Risk Analytics contact.

Applies to

Class 4 insurers, Class 3B insurers, Class C insurers, Class D insurers, Class E insurers, Class 3A insurers, insurance groups

Deadlines

• 21st April 2017: Instructions (forming basis of draft Rules) posted for field testing instead of the previously announced draft Rules.
• third quarter of 2017: Authority anticipates consulting on additional technical measures and related requirements.
• prior to the end of 2017: Draft rules connected to the further consultation are proposed to be posted.
• 31st July 2018: Proposed publication date for the final version of the Rules to be adopted.