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Bermuda Monetary Authority enhances insurance regulations

Posted: 12 August 2008

The Bermuda Monetary Authority has announced what it describes "significant enhancements to Bermuda's solvency and disclosure regulations for insurance."

Specifically the BMA said the changes "will help ensure that Bermuda "achieves recognition as having equivalent regulatory standards to those in Europe's Solvency II Directive." The Authority also announced new measures to facilitate special purpose vehicles (SPVs), such as securitizations and sidecars.

The BMA's CEO Matthew Elderfield expressed his satisfaction with the new regulations, indicating that they "mean we're well on track to achieving our objective of achieving equivalence, or mutual recognition status, in Europe and elsewhere. Bermuda is now one of the countries at the front of the pack in terms of preparing for Solvency II."

With the recent passage of the Insurance Amendment Act 2008, the Authority will now introduce, among other new and expanded regulatory initiatives, the Bermuda Solvency Capital Requirement (BSCR), an enhanced solvency regime that it will apply to Bermuda's Class 4 re-insurers (the highest category, which includes the Island's major public companies).

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