Notice - Proposed Enhancements to the Regulatory Regime and Fees for Commercial Insurers – Update (2023-04-03)

Summary

This BMA notice announces an update to the Bermuda Solvency Capital Requirement (BSCR) templates used by insurance groups and long-term insurers, specifically revising the 'Risk Margin info' tab. The change was made in response to market feedback and affects how Risk Margin results must be reported.

• What changed: The 'Risk Margin info' tab of the BSCR templates for insurance groups and long-term insurers has been amended.
• New requirement: Insurance groups and long-term insurers must now provide their Risk Margin results based on the various alternative Lapse Risk options.
• Exception: Insurers and groups with no Lapse Risk exposure are encouraged (not required) to continue using the prior version of the template published on 27 March 2023.
• Where to find it: The updated BSCR models have been re-published on the BMA's discussions and consultation papers webpage.

The notice is informational and procedural, directing affected insurers to the updated reporting template and inviting questions via riskanalytics@bma.bm; it does not set a new filing deadline itself.

Key obligations

• Insurance groups and long-term insurers must provide their Risk Margin results using the updated BSCR 'Risk Margin info' tab, reflecting the various alternative Lapse Risk options.

Applies to

insurance groups, long-term insurers