Notice - Quarterly Filing Requirements; Intra-Group Transactions (2012-03-12)

Summary

This is a clarificatory notice from the Bermuda Monetary Authority explaining which insurers and insurance groups are actually subject to existing quarterly filing requirements, and clarifying the scope of what counts as a reportable material intra-group transaction under those rules.

• Who must file quarterly returns: Bermuda insurance groups for which the Authority is group supervisor (under paragraph 8(1) of the Insurance Group Solvency Requirement Rules 2011), and insurers that are NOT members of a group for which the Authority is group supervisor (under paragraph 6AB(1) of the Class 4 and Class 3B Solvency Requirement Rules 2008).
• Who is exempt: An insurer that is a member of a group for which the Authority is the group supervisor does not itself need to file separate quarterly returns.
• Intra-group transaction scope for groups: Bermuda insurance groups must disclose material transactions between all members of the group.
• Intra-group transaction scope for standalone insurers: Class 4 and Class 3B insurers not part of a BMA-supervised group need only report material intra-group transactions affecting a Bermuda licensed entity within the group.
• Reporting relief: Insurers and groups may limit reporting to material intra-group transactions that have arisen since the most recently filed quarterly or annual return; unchanged or previously reported transactions need not be repeated.

Key obligations

• Bermuda insurance groups for which the Authority is group supervisor must file quarterly returns under paragraph 8(1) of the Insurance Group Solvency Requirement Rules 2011.
• Insurers that are not members of a group for which the Authority is group supervisor must file quarterly returns under paragraph 6AB(1) of the Class 4 and Class 3B Solvency Requirement Rules 2008.
• Bermuda insurance groups must disclose material intra-group transactions between all members of the group under paragraph 8(1)(b) of the Insurance Group Solvency Requirement Rules 2011.
• Class 4 and Class 3B insurers not part of a BMA-supervised group must disclose material intra-group transactions between the insurer and other group members affecting a Bermuda licensed entity, under paragraph 6AB(2)(b) of the Class 4 and Class 3B Solvency Requirement Rules 2008.
• Insurers and groups reporting intra-group transactions may limit disclosure to transactions that have materialised since the most recently filed quarterly or annual return, avoiding duplicate reporting of unchanged transactions.

Applies to

Bermuda insurance groups, Class 4 insurers, Class 3B insurers, insurers not members of a BMA-supervised group