Insurance Returns and Solvency Regulations 1980

Summary

These Regulations, made under the Bermuda Insurance Act 1978, prescribe the form and content of the annual statutory financial return that insurers must file with the Bermuda Monetary Authority. They set out the required components of the return, minimum solvency and liquidity requirements, and related certifications, and have been amended repeatedly since 1980 to add new schedules (e.g. cyber risk, sanctions compliance, AML/ATF) and to update terminology (Registrar/Supervisor/Authority).

Who is covered: Class A, Class B, Class 1, Class 2, Class 3 insurers, innovative insurers and ILT insurers registered under the Insurance Act 1978.
Core filing: Every insurer must send the Authority a statutory financial return in the prescribed form under section 18(1) of the Act.
Mandatory components: Cover sheet, auditor's report, general and/or long-term business solvency certificate, loss reserve opinion (where required), actuary's certificate, annual statutory declaration, statement of changes of control, own risk assessment, underwriting analysis, schedule of segregated accounts, schedule of cyber risk management, and schedule of sanctions compliance.
Solvency and liquidity: Insurers must meet the minimum margin of solvency (calculated per Schedule I for general business and Schedule II for long-term business) and, for general business, the minimum liquidity ratio.
Auditor duties: The approved auditor must certify compliance with the Act and regulations and must qualify the report where deficiencies, disagreements on valuation, non-compliance, unreasonable opinions, or going-concern doubts are identified.
AML/ATF and sanctions reporting: Schedule IV requires detailed reporting on the insurer's AML/ATF governance, senior compliance officer function, risk assessments, and related controls; a separate schedule addresses sanctions compliance.

The Regulations have been amended many times (from BR 39/1981 through 2019:51 and 2016:35 inserting Schedule IV), revoking some certificates (e.g. special purpose business solvency certificate) and adding new reporting schedules, but the core obligation to file a compliant statutory financial return each relevant financial year remains unchanged.

Key obligations

Every insurer must send the Authority a statutory financial return in the prescribed form for each relevant financial year, as required by section 18(1) of the Insurance Act 1978.
The return must include, as applicable, a cover sheet, auditor's report, general and/or long-term business solvency certificate, loss reserve opinion, actuary's certificate, annual statutory declaration, statement of changes of control, own risk assessment, underwriting analysis, schedule of segregated accounts, schedule of cyber risk management, and schedule of sanctions compliance.
Insurers must meet the minimum margin of solvency calculated in accordance with Schedule I (general business) or Schedule II (long-term business), and where applicable the minimum liquidity ratio for general business.
The insurer's approved auditor must examine the statutory financial statements and certify compliance with the Act and regulations, qualifying the report where specified deficiencies or disagreements arise.
General and long-term business solvency certificates must be signed by at least two directors (one Bermuda-resident director if any exists) and by the insurer's principal representative in Bermuda.
Insurers must complete the AML/ATF schedule (Schedule IV), reporting on senior compliance officer oversight, entity-wide risk assessments, independent programme reviews, and related governance matters, with certain reviews expected at least annually.

Applies to

Class A insurers, Class B insurers, Class 1 insurers, Class 2 insurers, Class 3 insurers, innovative insurers, ILT insurers, insurers registered under the Insurance Act 1978

Insurance Returns and Solvency Regulations 1980

Summary

Key obligations

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