Notice - Guidance Note ICM - July 2015 (2015-07-17)

Summary

This notice announces that the Bermuda Monetary Authority has updated its Guidance Note titled 'Standards and Application Framework for the Use of Internal Capital Models for Regulatory Capital Purposes'. The update confirms the requirements for internal capital model approval that apply to Long Term insurers and Class C and Class D insurers, and clarifies the requirements that apply where a Group model application is made.

• Scope: Applies to Long Term insurers and Class C and Class D insurers seeking approval of internal capital models for regulatory capital purposes.
• Change: Confirms internal capital model approval requirements and clarifies requirements specific to Group model applications.
• Reference: Affected insurers should refer to paragraphs 13, 46, and 59 to 64 of the updated Guidance Note for the specific clarified requirements.

Key obligations

• Insurers making a Group model application for internal capital model approval should review paragraphs 13, 46, and 59-64 of the updated Guidance Note to ensure compliance with the clarified requirements.

Applies to

Long-Term insurers, Class C insurers, Class D insurers