23 January 2014News

Bermuda will continue NAIC assessment in 2014

As part of the Bermuda Monetary Authority’s (BMA) 2014 business plan the Authority will participate in the full National Association of Insurance Commissioners (NAIC) qualified jurisdiction assessment.

In 2013 Bermuda was invited to participate in an expedited assessment, developed to evaluate the supervisory systems of non-US jurisdictions for reinsurance collateral reduction purposes. The process led to Bermuda being one of four jurisdictions to be granted Qualified Jurisdiction status in December.

According to the BMA, approval under the NAIC process means that reinsurers licensed and domiciled in Bermuda will be eligible to be certified for reduced reinsurance collateral requirements under the NAIC Credit for Reinsurance Model Law.

Also on the BMA’s 2014 business plan are the implementation of group supervision for Bermuda’s largest insurance groups and the roll out of electronic reporting for captive insurers on the Island.

Jeremy Cox, the Authority’s CEO, says: “in 2014, the Authority will continue to build upon our highly-regarded regime and further entrench key framework enhancements across all of the financial service sectors we regulate. We will also continue to facilitate business development for the jurisdiction while maintaining an effective, risk-based and appropriate regulatory environment that is workable for the quality firms which operate here.”

He concludes: “a world class financial services industry such as Bermuda’s requires the support of a world class financial services regulator capable of assuming a leading role at a global level. My goal and the goal of our leadership team is not only to ensure the Authority remains the world class regulator our industry and country demands. We also want to set the standard for quality regulation at home and abroad for the benefit of all stakeholders, including other regulators.”