Notice - Extended Consultation Period for Draft Legislation (2011-06-27)

Summary

This notice from the Bermuda Monetary Authority extends the public consultation period for two pieces of draft insurance legislation originally issued on June 27, 2011. It does not itself impose new regulatory requirements but gives interested parties more time to comment on the proposed rules.

• Class 3A Solvency Requirement Rules 2011: Would allow Class 3A insurers, subject to conditions, to use internal capital models instead of the standard BSCR SME model, and would require submission of capital and solvency returns by a specified filing date.
• Class 4 and 3B Solvency Requirement Amendment Rule 2011: Would amend filing requirements and clarify annual regulatory reporting provisions for Class 4 and Class 3B insurers, give the Authority power to revoke approval of an internal capital model, and require quarterly financial returns from Class 4 and Class 3B insurers where the BMA has not been appointed group wide supervisor.

The Authority extended the consultation window because the original posting of the drafts on its website was not fully evident to the market. The new deadline for submitting comments on both draft instruments is September 30, 2011.

Key obligations

• Interested parties wishing to comment on the draft Insurance (Prudential Standard) (Class 3A Solvency Requirement) Rules 2011 and the draft Insurance (Prudential Standard) (Class 4 & 3B Solvency Requirement) Amendment Rule 2011 must submit their comments to the BMA by the revised deadline of September 30th 2011.

Applies to

Class 3A insurers, Class 4 insurers, Class 3B insurers

Deadlines

• September 30th 2011: Revised deadline for interested parties to submit comments on the draft Class 3A Solvency Requirement Rules 2011 and the draft Class 4 & 3B Solvency Requirement Amendment Rule 2011