Insurance (Prudential Standards) (Insurance Group Solvency Requirement) Amendment (No. 2) Rules 2022

Summary

This Bermuda Monetary Authority rule amends the Insurance (Prudential Standards) (Insurance Group Solvency Requirement) Rules 2011, which set group solvency requirements for registered insurance groups under the Insurance Act 1978. It expands the quarterly reporting content required from insurance groups and adds a new risk exposure schedule to the group solvency framework.

• Paragraph 6 amendment: Inserts references to new Schedule IVF alongside existing Schedule IVE references in subparagraphs (1), (2) and (3)(b), extending existing schedule cross-references to cover the new schedule.
• Paragraph 8 amendment: Adds new required items to the quarterly reporting obligations: the ECR ratio for the financial quarter, total quoted and unquoted bonds allocated by SCR rating for the quarter, and details of any qualifying catastrophic event occurring in the quarter.
• Qualifying catastrophic event definition: Defines a qualifying catastrophic event as one recognized by a BMA approved catastrophe modelling firm with publicly estimated industry insured losses of US 5 billion or more, or any event otherwise determined by the Authority.
• New Schedule IVF: Inserts a new Schedule IVF, entitled Schedule of Risk Exposure, into the 2011 Rules, published on the BMA website as required by section 6A(8) of the Insurance Act 1978.

The amendments are deemed to have come into operation retroactively on 1 July 2022, meaning affected insurance groups' quarterly reporting from that date must reflect the expanded requirements.

Key obligations

• Registered insurance groups must include the ECR ratio for the financial quarter in their quarterly reporting under paragraph 8
• Registered insurance groups must report total quoted and unquoted bonds allocated by SCR rating for the financial quarter
• Registered insurance groups must report details of any qualifying catastrophic event (industry insured losses of US 5 billion or more, as recognized by an approved catastrophe modelling firm or determined by the Authority) occurring during the financial quarter
• Registered insurance groups must complete the new Schedule IVF (Schedule of Risk Exposure) as part of their solvency filings

Applies to

registered insurance groups

Deadlines

• 1 July 2022: Rules are deemed to have come into operation (retroactive commencement date) for the amended group quarterly reporting and new Schedule IVF requirements

Related documents

• This document is made under Insurance Act 1978