Notice - Insurance (Prudential Standards) (Recovery Plan) Rules 2024 (2024-05-03)

Summary

This is a notice from the Bermuda Monetary Authority (BMA) announcing that it has published the Insurance (Prudential Standards) (Recovery Plan) Rules 2024 under the Insurance Act 1978. The Rules require affected insurers to prepare recovery plans in advance of severe stress conditions, so they can act quickly and in a considered manner during a crisis.

• Scope: Applies only to Bermuda commercial insurers, defined to include insurers registered as Class 3A, Class 3B, Class 4, Class C, Class D, Class E, and insurance groups.
• Purpose: Requires insurers to prepare in advance for a range of possible adverse scenarios ahead of any severe stress condition.
• Commencement: The Rules come into operation on 1 May 2025.
• Where to find the Rules: The full text of the Rules is published on the BMA Legislation page under the Prudential Rules dropdown.

This notice itself is informational; the substantive obligations (e.g., the content and form of recovery plans) are set out in the Rules themselves, which are not reproduced in this notice.

Key obligations

• Bermuda commercial insurers (Class 3A, 3B, 4, C, D, E, and insurance groups) must comply with the Insurance (Prudential Standards) (Recovery Plan) Rules 2024 once they come into operation on 1 May 2025, which require preparation of recovery plans for severe stress conditions.

Applies to

Bermuda commercial insurers (Class 3A, Class 3B, Class 4, Class C, Class D, Class E), insurance groups

Deadlines

• 1 May 2025: Date on which the Insurance (Prudential Standards) (Recovery Plan) Rules 2024 come into operation.