Explanatory Memorandum to the Insurance (Prudential Standards) (Class 4 and Class 3B Solvency Requirement) Amendment Order 2010

Summary

This is a short explanatory memorandum describing proposed amendments to Bermuda's Insurance (Prudential Standards) (Class 4 and Class 3B Solvency Requirement) Order 2010. It is a draft policy document, not yet a binding rule, and explains the rationale behind changes the BMA is proposing following its June 2010 Consultation Paper on Disclosure and Transparency.

• Terminology: Clarifies terminology used in the existing Order.
• Underwriting disclosure: Provides a more detailed description of underwriting performance.
• Scope extension: Extends certain disclosures to Class 3B insurers, which were not previously covered.
• Additional reporting: Introduces new reporting proposals for both Class 4 and Class 3B insurers, including loss triangles categorised by broad line of business, a Commercial Insurer's Solvency Self Assessment Return, and a Catastrophe Return.

As an explanatory memorandum accompanying a draft amendment order, this document itself does not create enforceable obligations; it summarises the intended effect of changes that would, if adopted, amend solvency and disclosure requirements for Class 4 and Class 3B insurers.

Applies to

Class 4 insurers, Class 3B insurers