Notice on 2022 Legislative Changes: Insurance Amendment No.1 Act 2022 and Insurance (Prudential Standards) Amendment Rules 2022 (2021-12-16)

Summary

This is a Bermuda Monetary Authority (BMA) notice announcing proposed legislative changes to Bermuda's insurance regulatory framework: the Insurance Amendment No.1 Act 2022 and the Insurance (Prudential Standards) Amendment Rules 2022. It is a consultation notice describing forthcoming amendments and inviting industry comments before finalisation, rather than a rule already in force.

• Insurance Act 1978 amendments: Would revise supervisory requirements relating to the winding up of composite insurers, plus housekeeping (administrative) changes.
• New Schedule IVF Risk Exposure: Would require all insurance groups and Class 4, 3B, 3A, C, D and E insurers to file a new Schedule IVF covering risk exposures such as number of subsidiaries, general business gross premium written, gross losses incurred and reserve details for the financial period.
• Quarterly returns for long-term insurers: Would require long-term Classes C, D and E insurers to provide a quarterly return within two months after each quarter end.
• Expanded quarterly return content: For insurance groups and Class 4 and 3B insurers, would expand quarterly return requirements to include Enhanced Capital Requirement ratio, Commercial Insurers Solvency Self-Assessment requirement, Bonds by Bermuda Solvency Capital Requirement rating, and catastrophe risk exposure details for the quarter.

The notice directs readers to the Authority's website for full details of the proposed amendments and sets a deadline for submitting comments to the BMA's risk analytics team.

Key obligations

• Interested parties must submit comments on the proposed amendments to riskanalytics@bma.bm by 16 January 2022

Applies to

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

Deadlines

• 16 January 2022: Deadline for submitting comments on the proposed Insurance Amendment No.1 Act 2022 and Insurance (Prudential Standards) Amendment Rules 2022 to riskanalytics@bma.bm