Notice - Prudential Rules - Public Disclosures (2015-07-23)

Summary

This is a Bermuda Monetary Authority (BMA) notice announcing that draft amendments to two sets of prudential rules have been posted for public consultation under Section 6B of the Insurance Act 1978. The amendments would affect Rule 3(7) of the Insurance (Public Disclosure) Rules 2011 and Rule 30(7) of the Insurance (Group Supervision) Rules 2011, both of which concern the Financial Condition Report (FCR).

• Nature of change: The amendments would mean the Authority will not approve exemptions or modifications to FCR disclosure requirements based solely on competitive disadvantage concerns for an insurer or insurance group.
• Confidentiality exception preserved: Exemptions may still be granted where the insurer or insurance group has contractual obligations with counterparties requiring that capital management information be kept confidential.
• Rationale given: The Authority states that capital management information relating to matters pertaining to the Financial Condition Report should be disclosed to the public and to policyholders, and that competitive disadvantage alone is not sufficient grounds for an exemption.
• Instruments open for comment: Insurance (Public Disclosure) Amendment Rules 2015 and Insurance (Group Supervision) Amendment (No. 2) Rules 2015.

The notice is a consultation invitation rather than a final rule. Stakeholders are asked to submit comments to the Authority before the rules are finalised; no substantive compliance obligations take effect from this notice itself.

Key obligations

• Interested parties wishing to comment on the proposed Insurance (Public Disclosure) Amendment Rules 2015 and Insurance (Group Supervision) Amendment (No. 2) Rules 2015 must send comments to policy@bma.bm no later than 21st August 2015.

Applies to

insurers, insurance groups

Deadlines

• 21st August, 2015: Deadline for stakeholders to send comments on the proposed amendment rules to the Authority at policy@bma.bm.

Related documents

• This document amends Insurance (Public Disclosure) Rules 2015