Stakeholder Letter - Consultation Paper on IAIG Definition (2021-02-25)

Summary

This is a stakeholder feedback letter from the Bermuda Monetary Authority summarising comments received on its December 2020 consultation paper proposing to introduce the concept of an Internationally Active Insurance Group (IAIG) into Bermuda's insurance framework, and setting out the Authority's responses and resulting actions. It does not itself amend legislation but signals how the Authority intends to finalise proposed changes to the Insurance Act 1978.

• Scope confirmation: The Authority confirms the proposed IAIG amendments apply only to insurance groups for which the BMA is the group supervisor, not to IAIGs designated by other authorities operating in Bermuda.
• IAIG definition wording: The Authority will revise the proposed section 27A definition from 'writes premium in three or more jurisdictions' to 'premiums are written in three or more jurisdictions' to align with the IAIS ComFrame definition.
• No new appeal right: The Authority declines to add IAIG determinations to the list of appealable decisions under section 44A(1), noting the designation process already allows written representations before a determination is made.
• Future regulatory requirements: Additional ComFrame-derived regulatory requirements and disclosures for IAIGs designated by the Authority will be developed via a future implementation roadmap and subjected to further public consultation.

The letter is informational in nature, closing out this round of consultation; it does not create immediate compliance obligations but previews forthcoming legislative amendments and a future consultation on additional IAIG requirements.

Applies to

insurance groups, Internationally Active Insurance Groups (IAIGs)