Explanatory Memorandum - Insurance (Prudential Standards)(Class 4 Solvency Requirement) Amendment Order 2010

Summary

This is a short explanatory memorandum accompanying the Insurance (Prudential Standards)(Class 4 Solvency Requirement) Amendment Order 2010, issued by the Bermuda Monetary Authority. It explains that the Order, first published for consultation in June 2010, was revised in response to industry feedback before finalisation.

• Nature of change: The revisions to the draft Order primarily concern reporting on eligible capital requirements for Class 4 insurers.
• Effective date: The Order is intended to come into force on December 31, 2010.

The memorandum itself is informational, summarising the background and purpose of the amendment rather than setting out detailed rule text; the substantive solvency and reporting requirements are contained in the Order itself.

Key obligations

• Class 4 insurers must comply with the revised eligible capital reporting requirements set out in the amended Order once it takes effect.

Applies to

Class 4 insurers

Deadlines

• December 31, 2010: Intended commencement date of the Insurance (Prudential Standards)(Class 4 Solvency Requirement) Amendment Order 2010.