The Bermuda Monetary Authority (BMA) publishes an updated guidance note for general business insurers that use segregated accounts and separate accounts, collectively known as SAC insurers. The requirements will come into effect on 1 January 2027.
The guidance note covers licensing, waivers and modifications, governance expectations, risk management practices and reporting requirements. It follows what the BMA describes as extensive market consultation.
According to the BMA, the Bermuda SAC market has expanded beyond the standard rent-a-captive market in recent years, and the update reflects the current use and application of SAC structures. SAC insurers in Bermuda operate across property and casualty sectors including captive insurance, insurance-linked securities (ILS) and innovative insurance, and the BMA says new SAC formations are steadily increasing.
Gerald Gakundi, deputy managing director and head of insurance and investment funds at the BMA, says: “The BMA also recognises the need for clarity on the scope and implementation of the provisions within the guidance to ensure our stakeholders have a sound understanding of the regulatory regime for SAC insurers in Bermuda.”
On reporting, Gakundi adds: “Rather than increasing the number of annual reporting forms, the Authority has introduced Agreed Upon Procedures (AUPs) over the schedule of segregated accounts, which has been in place since 2018. This targeted approach enhances transparency and data capabilities while maintaining an efficient and pragmatic reporting process.”
The BMA encourages market participants with questions about the guidance note to contact their supervisory teams.
