Bermuda’s global insurance and reinsurance market has praised the efforts of the Bermuda Monetary Authority (BMA) in light of the island being granted Reciprocal Jurisdiction status by The National Association of Insurance Commissioners (NAIC).
Announced yesterday, Bermuda is one of only three jurisdictions to receive this elevated status, which was introduced by the NAIC in 2019 and is only attainable by first gaining the pre-requisite Qualified Jurisdiction status and recognising the US state regulatory system for group supervision and group capital.
Effective January 1st, 2020, Bermuda, alongside Japan and Switzerland are recognised as being on par with the U.S., meaning that Bermuda domiciled insurers and reinsurers can operate in the market without additional capital requirements.
The Chief Executive Officer (CEO) of the Bermuda Development Agency (BDA), Roland Andy Burrows, said: “Today’s endorsement from the NAIC is a significant win for Bermuda and testament to the hard work that takes place to ensure we remain at the forefront of the global (re)insurance market.
“We thank the BMA for their efforts, as well as the NAIC and all our industry stakeholders, and look forward to a positive 2020.”
Being granted this elevated status puts the region on an equal footing with its counterparts from the EU and the UK, and, businesses and consumers in America also stand to benefit from improved efficiencies and access to the island’s capital and expertise.
Deputy Chair of the BDA, Stephen Weinstein, said: “We were very pleased to see Bermuda’s robust, fit-for-purpose regulatory regime accorded this important distinction from the NAIC, whose standards are respected worldwide. Insureds, intermediaries and communities across the U.S. will only benefit from ensuring level playing field access to Bermuda’s capital and risk management expertise, and from further reducing the costs of exporting risk to the Bermuda market.
“The staff of the Bermuda Monetary Authority deserve our appreciation both for their success in being one of three regulators worldwide to obtain this designation, and for their sustained efforts over the years to protect policyholders while adapting to changes in the industry and the underlying markets and communities we serve.”
Additionally, the NAIC also confirmed that Bermuda has been re-approved as a Qualified Jurisdiction.
John Huff, President of the Association of Bermuda Insurers and Reinsurers (ABIR), commented: “Bermuda’s leading reinsurers have long been reliable partners in providing natural catastrophe and specialty reinsurance and a growing amount of cyber insurance protection for U.S. consumers. The hard earned ‘reciprocal jurisdiction’ status demonstrates the quality of Bermuda’s world-class regulatory regime and gives Bermuda a competitive edge against other international markets.”
Ronnie Klein, Senior Advisor, Bermuda International Long Term Insurers and Reinsurers (BILTIR), added: “NAIC qualification is extremely important to BILTIR member companies as much of our business is transacted in and with the U.S. We are proud to be considered in the same jurisdictional category as Japan and Switzerland and it shows that all of the hard work the Bermuda Monetary Authority has done paid off. BILTIR members will continue to partner with the BMA to make certain that Bermuda remains NAIC-qualified.”
