The Bermuda Monetary Authority (BMA) has proposed amendments to the rules governing annual filing requirements for insurers.
The proposed changes affect the alternative capital schedule that insurers have had to file with the BMA since January 2018.
Under the new rules, insurers funded by alternative capital arrangements must file additional information, including: the name of the insured; re/insurance contract reference number; type of re/insurance coverage written; statutory line of business written; location of exposure covered; aggregate maximum limit as at inception date of contract of insurance; net aggregate maximum limit as at the end of the insurer’s financial year; inception date of coverage period; effective date of contract; expiry date of cover period; gross premium written for the cover period; net premium written for the cover period; attachment point; aggregate losses outstanding at the beginning of the insurer’s financial year; aggregate losses incurred during the insurer’s financial year; aggregate losses outstanding at the end of the insurer’s financial year; reserved buffer collateral; currency of exposure; nature of collateral; average collateral rating; and amount of collateral at the end of the insurer’s financial year.
The changes apply to all general business classes that are funded by alternative capital arrangements – capital provided by an alternative capital provider for the purposes of collateralising an insurer against contract of insurance losses.
The BMA insisted the changes do not represent a fundamental change to the filing requirements for insurers, but enhanced transparency and trust in the island’s regulatory regime.
“The Schedule collects essential alternative risk transfer data to assist the authority in maintaining a prudent supervisory regime for this rapidly growing sector. In addition, the information provides the authority with the ability to produce valuable aggregate statistics for publication as the authority did with the publication of the BMA Alternative Capital Report 2018,” it added.
The BMA proposes the amendments become effective from 2019 year-end filings, and is inviting comments from the market by August 29 this year, which should be sent to firstname.lastname@example.org
*This story corrects an earlier version that incorrectly suggested there were new filing requirements for listed insurers on the BSX. To be clear, there are no new filing requirements for listed insurers on BSX. Bermuda:RE+ILS apologises for this mistake.
Bermuda Monetary Authority, Alternative capital schedule