Regulatory (Amendment) Code, 2021

Summary

This Code amends the BVI Regulatory Code by updating the list of acceptable auditing standards for audits of licensees' financial statements, and by inserting a new section requiring licensed insurers and licensed insurance intermediaries to keep detailed claims handling records. It came into force on 6 July 2021.

• Auditing standards: Section 59(2)(a) is revoked and replaced to permit audits under US GAAS, International Standards on Auditing (UK), International Standards on Auditing, Hong Kong Standards on Auditing, Canadian Auditing Standards, or other internationally recognised standards approved by the Commission case by case.
• Claims handling records: A new section 142A requires licensed insurers to maintain records evidencing the inception, handling and conclusion of each claim sufficient to create a full chronology.
• Loss adjusters: Where a loss adjuster is engaged, the insurer must obtain and keep records from the loss adjuster sufficient to reconstruct the chronology and actions taken in investigating and settling each claim.
• Insurer to intermediary: Where a claim involves a licensed insurance intermediary, the insurer must give that intermediary enough information and documentation to understand all actions taken in handling and concluding the claim.
• Intermediary recordkeeping: Licensed insurance intermediaries must maintain, in addition to records received from the insurer, all other records evidencing their own activities in receiving, handling and concluding a claim.

Explanatory notes accompanying the Code set out the types of records expected to be kept (claim forms, correspondence, investigation documentation, payment records, etc.) and additional class-specific documentation for motor, marine and aviation, liability, general, property, life, accident and health, and goods in transit insurance.

Key obligations

• Licensed insurers must maintain records evidencing the inception, handling and conclusion of each claim sufficient to create a full chronology of the claims handling process
• Licensed insurers must obtain and maintain records from any loss adjuster engaged to investigate or settle claims, sufficient to evidence the loss adjuster's actions and create a chronology
• Licensed insurers must provide licensed insurance intermediaries with sufficient information and documentation to understand all actions taken in handling and concluding a claim, where the claim was filed through or the policy sold through that intermediary
• Licensed insurance intermediaries must maintain records evidencing their own activities in the receipt, handling and conclusion of a claim, in addition to records provided by the insurer
• Auditors' reports to licensees must be prepared in accordance with one of the specified recognised auditing standards (or another standard approved by the Commission)

Applies to

licensed insurers, licensed insurance intermediaries, licensees subject to audit requirements under the Regulatory Code

Deadlines

• 6 July 2021: Commencement date on which the Regulatory (Amendment) Code, 2021 came into force