Revisions will bolster Bermuda’s international reputation and financial stability, says industry body
The Bermuda Monetary Authority (BMA) has announced it will make targeted enhancements to regulatory and supervisory regimes for commercial insurers.
In a notice to the market, the regulator said the enhancements mostly focus on the regulatory and supervisory frameworks for long-term (Life) insurers and are “aimed at ensuring that the regime continues to remain fit for purpose, in line with international standards, and keeps pace with market developments”.
It added that the BMA is “confident that the cornerstones of the regulatory regime for commercial insurers are sound” but that it continually monitors trends and market developments, including evolving risk and business models, and adjusts its regime according to international standards.
The BMA said this was consistent with regulatory peers in other jurisdictions such as the European Union, which reviews its Solvency II framework, and the National Association of Insurance Commissioners in the United States.
The enhancements will cover technical provisions, Bermuda Solvency Capital Requirement (BSCR) computation, and the flexibility of the BSCR framework. The BMA will issue a consultation paper in the first quarter of 2023.
Bermuda International Long Term Insurers and Reinsurers (BILTIR) has welcomed the decision. “The enhancements align with BILTIR’s primary focus to safeguard our cedents and policyholders,” said BILTIR Chair Natasha Scotland Courcy.
“BILTIR views the revisions as a positive direction for the Bermuda life (re)insurance industry, to bolster Bermuda’s international reputation and financial stability.
“BILTIR will engage with its members to provide industry feedback on the consultation that the BMA plans to release in early 2023.”