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Craig Swan, CEO of Bermuda Monetary Authority
The Bermuda Monetary Authority (BMA) is seeking input from the re/insurance industry on recovery planning rules, which are designed to ensure the sector can withstand a range of possible adverse situations and severe stress conditions.
The BMA said it has instigated the consultation because it wants to enhance its regulatory regimes to ensure they remain appropriate for the financial sectors it regulates. This includes establishing Recovery Planning Rules, which the Authority considers an essential pillar in strengthening its prudential framework.
“The rules are aimed at ensuring that insurers prepare for a range of possible adverse situations ahead of any severe stress condition,” the BMA said. “Ultimately, this should assist insurers in taking effective and thoughtful measures in a timely manner in crisis situations without unnecessary pressure.”
The BMA aims to use these rules to formalise its oversight of recovery planning to ensure it has the appropriate powers to identify and assess an insurer’s options to recover financial strength and viability under severe stress.
The regulator said it now wishes to solicit feedback from stakeholders on the proposed rules.
The consultation paper has been published on the Authority’s website.
Bermuda Monetary Authority (BMA), Recovery, Stress conditions, Insurance, Reinsurance, Bermuda