6 January 2021News

BMA cancels registration for Economic Risk Insurance

The Bermuda Monetary Authority (BMA) has cancelled the insurance registration of Economic Risk Insurance (ERI), a Class 3 insurer, for breaches of the Insurance Act 1978.

The BMA said it was satisfied that ERI was in breach of the Insurance Act in four key areas, namely that it has not: conducted any business within two years of its registration; paid annual fees and late payment fees due for 2019 and 2020; maintained a principal representative; or filed statutory financial returns for the years ended December 31, 2015 to 2019, inclusive.

The BMA said its action had been taken to protect the interests of ERI’s potential clients, with the breaches demonstrating systemic weaknesses of its internal controls. ERI had been given “significant opportunities” to remedy the breaches, it added, but had failed to take appropriate steps to address them.

Once the enforcement action was initiated, the statutory process was followed, culminating in a 10- day appeal period, which expired on December 24, 2020. The decision was not appealed.