Bermuda International Long Term Insurers and Reinsurers (BILTIR) has announced its support towards the proposed enhancements to the regulatory and supervisory regime for long-term commercial insurers, reinsurers and insurance groups on the island.
Last week, February 24, the Bermuda Monetary Authority’s (BMA) issued its first consultation paper, which it said is intended to serve the double goal of protecting policyholders and contributing to financial stability.
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 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 Natasha Scotland Courcy, BILTIR Chair.
The organisation, which represents the Bermuda life insurance and reinsurance industry, is also encouraging its members to take part in the consultation by providing requested data to the BMA by April 30, 2023.
Scotland added: “Any changes to the regulatory framework are invariably complex, therefore we strongly encourage our members to participate in both field testing processes.
According to the announcement, BILTIR will actively engage with the BMA throughout the year as the enhancements are developed.
Additionally, the organisation has shared its intentions to release a second consultation paper in Q3 2023 before the proposed changes are brought to legislation, which are expected to come into effect on January 1, 2024.