Insurance (Public Disclosure) Rules 2015

Summary

These Rules require certain classes of Bermuda insurers to prepare, file and publicly disclose a financial condition report each year, and to report significant events that materially affect that information. They set out filing, publication and record keeping requirements, grounds on which the Authority may modify or exempt an insurer from disclosure, and civil penalties for non compliance.

• Who is covered: Class 3A, Class 3B, Class 4, Class C, Class D and Class E insurers.
• Financial condition report: Every insurer must prepare a financial condition report in accordance with Schedule I, in electronic and printed form, and file it with the Authority on or before the filing date under section 17(4)(b) of the Insurance Act 1978.
• Publication: Insurers with a website must publish the report within 14 days of filing; insurers without a website must furnish a copy to the public within 10 days of a written request.
• Record keeping: Copies of the financial condition report must be kept at the insurer's head office for five years from the filing date.
• Significant events: A significant event occurring before the filing date must be reported as part of the financial condition report under the Subsequent Event heading; one occurring after the filing date must be reported to the Authority within 14 days of occurrence.
• Publication of significant events: Insurers with a website must publish a report on a post filing date significant event within 30 days of submitting it to the Authority (or another date agreed with the Authority); insurers without a website must furnish it within 30 days of a written request. Copies must be kept for five years.
• Signing declaration: Every financial condition report or significant event report must be signed by the chief executive and a senior executive responsible for actuarial, risk management, internal audit or compliance functions, declaring it fairly represents the insurer's financial condition.
• Modification or exemption: The Authority may consider applications under section 6C of the Act to modify or exempt an insurer from these requirements in specified circumstances (competitive disadvantage, confidentiality obligations, legal prohibitions, direct equivalent disclosure to policyholders, group supervision, or other statutory disclosure), but cannot exempt an insurer from disclosing capital management particulars.
• Civil penalties: Failure to file a financial condition report or significant event report results in a civil penalty for each week or part week of non compliance: up to $1,000 for Class 3A or Class C insurers, and up to $5,000 for Class 3B, Class 4, Class D or Class E insurers; the higher penalty applies where an insurer falls into more than one category.

The Rules came into operation on 1 January 2016 and apply to financial years commencing on or after that date. The Schedule I template referenced in rule 3 is published separately on the BMA website rather than in these Rules.

Key obligations

• Every insurer must prepare a financial condition report in accordance with Schedule I and file it with the Authority on or before the filing date
• Insurers with a website must publish the financial condition report on their website within 14 days of filing with the Authority
• Insurers without a website must furnish a copy of the financial condition report to the public within 10 days of a written request
• Insurers must keep copies of the financial condition report at their head office for five years from the filing date
• Insurers must report a significant event occurring before the filing date within the financial condition report under the Subsequent Event heading
• Insurers must submit a report on a significant event occurring after the filing date to the Authority within 14 days of the event's occurrence
• Insurers with a website must publish a report on a post filing date significant event within 30 days of submitting it to the Authority, or by another date agreed with the Authority
• Insurers without a website must furnish a copy of a significant event report to the public within 30 days of a written request
• Insurers must keep copies of significant event reports at their head office for five years from filing
• Every financial condition report or significant event report must be signed by the chief executive and a relevant senior executive declaring it fairly represents the insurer's financial condition

Applies to

Class 3A insurers, Class 3B insurers, Class 4 insurers, Class C insurers, Class D insurers, Class E insurers

Deadlines

• on or before the filing date: Deadline for insurers to file the financial condition report with the Authority
• within 14 days of the date the report was filed: Deadline for insurers with a website to publish the financial condition report
• within 10 days of receipt of a written request: Deadline for insurers without a website to furnish the financial condition report to the public on request
• within 14 days of the occurrence of the event: Deadline to submit a report on a significant event occurring after the filing date
• within 30 days of the date of submission of the report to the Authority: Deadline for insurers with a website to publish a significant event report occurring after the filing date
• within 30 days of receipt of a request made in writing: Deadline for insurers without a website to furnish a significant event report to the public on request
• five years: Period for which insurers must keep copies of financial condition reports and significant event reports at their head office
• 1 January 2016: Commencement date of the Rules, applying to financial years commencing on or after this date

Related documents

• This document is made under Insurance Act 1978
• Notice - Prudential Rules - Public Disclosures (2015-07-23) amends this document
• Insurance (Public Disclosure) Amendment Rules 2015 amends this document
• Notice - Insurance (Public Disclosure) Amendment Rules 2016 and Insurance (Group Supervision) Amendment Rules 2016 (2016-05-13) amends this document
• Notice - Insurance Prudential Rules - Public Disclosures (2015-07-23) amends this document