Insurance (Prudential Standards) (Class 3A Solvency Requirement) Amendment Rules 2022 (BR 38/2022)

Summary

This is a short amendment instrument issued by the Bermuda Monetary Authority that updates the solvency capital rules applicable to Class 3A insurers. It replaces one schedule of the underlying 2011 Rules with a revised version covering eligible assets used in solvency calculations.

• What changes: Schedule VI of the Insurance (Prudential Standards) (Class 3A Solvency Requirement) Rules 2011, previously titled Schedule of fixed income securities, is revoked and replaced with a new Schedule VI titled Schedule of Assets.
• Publication: The new Schedule VI (Schedule of Assets) is published separately on the BMA website in accordance with section 6A(8) of the Insurance Act 1978.
• Effective date: The Rules are deemed to have come into operation on 1 January 2022, even though made on 5 April 2022, meaning they apply retroactively from the start of that year.

Class 3A insurers must use the updated Schedule of Assets, rather than the former fixed income securities schedule, when calculating their solvency capital requirement under the Class 3A regime from 1 January 2022 onward.

Key obligations

• Class 3A insurers must apply the new Schedule VI (Schedule of Assets), rather than the previous Schedule of fixed income securities, when determining their solvency capital requirement from the deemed commencement date.

Applies to

Class 3A insurers

Deadlines

• 1 January 2022: Deemed commencement date from which the amended Schedule VI (Schedule of Assets) applies to Class 3A solvency calculations.

Related documents

• This document is made under Insurance Act 1978
• This document amends Insurance (Prudential Standards) (Class 3A Solvency Requirement) Rules 2011