Notice - Insurance (Prudential Standards) (Class E Solvency Requirement) Amendment Rules 2012 (2012-06-19)

Summary

This is a BMA notice announcing draft amendments to the Insurance (Prudential Standards) (Class E Solvency Requirement) Rules 2011, extending enhanced capital and solvency reporting requirements that previously applied only to Class E long-term insurers to also cover Class C and Class D long-term insurers. The rules are retitled to reflect the expanded scope and a new Schedule XIII is inserted setting out the Class C Bermuda Solvency Capital Requirement (BSCR) formula and related capital factor tables.

• Renaming: The Class E Rules 2011 are retitled the Insurance (Prudential Standards) (Class C, Class D and Class E Solvency Requirement) Rules 2011.
• Class C insurers: Must submit a capital and solvency return under new Schedule XIII, which prescribes the Class C BSCR formula and capital factor tables for fixed income, equity, credit, interest/liquidity and long-term insurance risks.
• Class D insurers: Must submit the same capital and solvency return as Class E insurers under the amended Rules.
• Consequential amendments: Paragraphs 1, 3, 4, 5 and 6 and Schedule I of the principal Rules are amended to insert references to Class C and Class D alongside Class E.
• Consultation: The Authority invites comments on the draft Rules, to be sent to policy@bma.bm.

The notice states the Rules are intended to take effect from 1 January 2013, while the attached draft text of the Rules itself specifies a commencement date of 31 December 2012; readers should check the final made version of the Rules for the definitive commencement date.

Key obligations

• Class C insurers must submit a capital and solvency return in accordance with new Schedule XIII
• Class D insurers must submit the same capital and solvency return under the Rules as Class E insurers
• Interested parties must submit comments on the draft Rules to policy@bma.bm by the stated comment deadline

Applies to

Class C long-term insurers, Class D long-term insurers, Class E long-term insurers

Deadlines

• 15th August 2012: Deadline for submitting comments on the draft Rules to policy@bma.bm
• 1st January 2013: Date stated in the notice as when the Rules are effective
• 31 December 2012: Commencement date stated in the draft Rules text itself