BILTIR backs BMA’s proposed regulatory changes

Bermuda International Long Term Insurers and Reinsurers (BILTIR) has said it supports the Bermuda Monetary Authority’s (BMA) proposed enhancements to the regulatory and supervisory regime for long-term commercial insurers, reinsurers and insurance groups on the island.

On February 24, 2023, the BMA issued its first consultation paper, which it said is intended to serve the double goal of protecting policyholders and contributing to financial stability.

“BILTIR supports enhancements to the regulatory framework which further protect our life and annuities policyholders. The protection of policyholders and cedants is the number one priority of BILTIR member companies,” said BILTIR Chair Natasha Scotland Courcy.

The proposed regulatory enhancements cover technical provisions, Bermuda Solvency Capital Requirements, the governance of the EBS framework and BMA fee changes. It will include two field testing exercises which the BMA has indicated will enable it to assess and refine the impacts of the proposed changes.

BILTIR, which represents the Bermuda life insurance and reinsurance industry, is encouraging its members to take part in the consultation by providing requested data to the BMA by April 30, 2023.

“Any changes to the regulatory framework are invariably complex, therefore we strongly encourage our members to participate in both field testing processes,” said Courcy.

BILTIR will actively engage with the BMA throughout the year as the enhancements are developed.

The BMA has indicated that it intends to release a second consultation paper in Q3 2023 before the proposed changes are brought to legislation. The changes are expected to come into effect on January 1, 2024.