Insurance (Special Purpose Insurers) (Statements, Returns and Solvency Requirements) Rules 2020 - Schedules

Summary

These are the technical Schedules (I-V) attached to Bermuda's Insurance (Special Purpose Insurers) (Statements, Returns and Solvency Requirement) Rules 2020. They set out the prescribed forms for statutory financial returns and the detailed instructions and additional disclosure requirements that Special Purpose Insurers (SPIs) must follow when preparing and filing their statutory returns with the Bermuda Monetary Authority.

• Schedule I: Prescribed forms for statutory financial returns, including the Statutory Balance Sheet (Forms 1A and 4) for general and long-term business, Statutory Statement of Income (Forms 2A and 5), and Statutory Statement of Capital and Surplus (Form 8).
• Schedule II: Instructions requiring statutory financial statements to be populated from the SPI's GAAP financial statements; unrestricted business SPIs must file audited GAAP statements (unless exempted), while restricted business SPIs need not audit but must submit any audited statements they do prepare; GAAP statements and notes must be filed in all cases, even if unaudited.
• Schedule III: Requires SPIs to file detailed information on all alternative capital arrangement contracts of insurance requiring collateral, alongside their Annual Statutory Financial Statements, covering premiums, limits, losses, collateral and related contract data.
• Schedule IV: Requires every SPI to file a Schedule of Cyber Risk Management in the Authority's prescribed form, unless waived because the SPI relies on its insurance manager's cyber security systems and the manager files the schedule on its behalf.
• Schedule V: Requires SPIs to report on sanctions compliance, including whether they screen policyholders, beneficiaries and employees against the Bermuda sanctions regime, and details of any client asset freezes in the preceding 12 months.

Collectively, the Schedules operationalise the reporting obligations of the parent Rules, giving SPIs the exact forms, content and supporting disclosures the Authority expects with each annual statutory filing.

Key obligations

• SPIs must prepare statutory financial statements (balance sheet, statement of income, statement of capital and surplus) using the prescribed Forms 1A/4, 2A/5 and 8, populated from the corresponding GAAP financial statement values.
• SPIs writing unrestricted special purpose business must file audited GAAP financial statements unless granted an audit exemption by the Authority.
• SPIs writing restricted special purpose business are not required to audit GAAP financial statements, but if audited statements are prepared for other purposes they must be submitted to the Authority.
• All SPIs must file GAAP financial statements, including accompanying notes, even where those statements are unaudited.
• Unrestricted SPIs registered as segregated accounts companies must consolidate segregated and general account assets/liabilities in GAAP statements where permitted, or otherwise audit their Statutory Financial Statements on a consolidated basis prepared under the Insurance Accounts Regulation 1980.
• Every SPI must file, together with its Annual Statutory Financial Statements, detailed information on all alternative capital arrangement contracts for which it was required to hold collateral.
• Every SPI must file a Schedule of Cyber Risk Management in the Authority's prescribed form, unless waived because it relies on its insurance manager's cyber security systems and that manager files the schedule and confirms reliance.
• Every SPI must provide sanctions compliance information, including whether it screens policyholders, beneficiaries and employees, and details of any client asset freezes in the last 12 months under the Bermuda sanctions regime.

Applies to

Special Purpose Insurers, insurance managers

Deadlines

• along with its Annual Statutory Financial Statements: SPIs must file the Alternative Capital Arrangements information (Schedule III) together with their Annual Statutory Financial Statements.
• for the relevant year: Where an insurance manager files the Schedule of Cyber Risk Management on behalf of an SPI, it must do so for the relevant year to preserve the SPI's waiver from filing its own schedule.