The Bermuda Monetary Authority (BMA) is seeking increased capital provisions and additional reporting requirements for long-term insurer Classes C and D to comply with Bermuda's Solvency II framework.
The BMA issued a Notice in respect of the Insurance (Eligible Capital) Amendment Rules 2015 (Amendment) that it intends all provisions and requirements of the Insurance (Eligible Capital) Rules 2012 (Rules) apply to insurer Classes C and D with effect from 31 December 2015.
The Rules presently apply to Classes 3A/ 3B, 4 and E. Currently, Class C insurers are required to maintain minimum capital and a surplus of $500,000 and Class D insurers are required to maintain minimum capital and a surplus of $4,000,000. Class C and D insurers will now be subject to the tiered capital regime when determining their available statutory capital and surplus, and enhanced capital requirements, for the purpose of determining their solvency.
The Amendment reflects initial communication by the BMA that the Rules apply to all classes of commercial insurers.
Further, the BMA's Bermuda Solvency Capital Requirement was implemented in 2013 for insurer Classes C and D (and Class E), the first of a three-year phase designed to address market-specific risks and providing long-term insurers a transition period to progress on necessary adjustments towards the full enhanced capital requirement.
A copy of the Amendment and Rules is available here. AMENDMENT, RULES
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