Insurance managers in Bermuda will have until 31 December to move on to the new risk-based supervisory regime, according to Graham Lamb, assistant director of insurance at the Bermuda Monetary Authority (BMA).
The new risk-based supervisory regime comes in response to the BMA recognising the key role that insurance managers play in the Bermuda insurance market to both captive and commercial insurers.
The BMA announced in its 2016 business plan that it intended to build a risk-based supervisory regime for insurance managers, which would include a change in Bermuda’s insurance legislation and the introduction of a new Insurance Managers’ Code of Conduct
In April, the BMA published a draft of the changes for consultation, including a consultation paper on the proposed Insurance Amendment Act 2016 and the new Insurance Management Code of Conduct. The consultation closed at the end of May and the BMA plans for the transitional period for the new rules to run until 31 December.
Addressing attendees of the Bermuda Captive Conference, Lamb said the key elements that the BMA is looking to include in the new regime are the role of the board, internal management controls, outsourcing, reputation, corporate governance frameworks and cooperation with regulatory authorities.
Lamb also revealed that the BMA is going to introduce a filing for insurance managers. It will be an annual filing due six months after the financial year-end. He said the filing will allow the BMA to assess the insurance managers’ operations and conduct appropriate risk-based supervision.
