In the light of concerns raised in industry feedback, the Bermuda Monetary Authority (BMA) has decided to postpone the introduction of various adjustments to the Bermuda Solvency Capital Requirement (BSCR) standard formula that were proposed in its November 2016 Consultation Paper.
The adjustments were originally scheduled to be field-tested in 2017 with a view to their implementation for year-end filings for financial years beginning on or after 1 January 2017. They will now be introduced for year-end filings for financial years beginning on or after 1 January 2018. There will then be a three-year grade-in period.
The BMA considers that the adjustments are necessary to bring the BSCR into line with international standards. The adjustments include the following:
Read “Bermuda: Changes to Bermuda Solvency Capital Requirement Postponed” at Mondaq News
Bermuda is officially home for the XL Group Ltd after it completed its redomestication to the island today, a move that was announced at the beginning of the year.
The international insurer and reinsurer started operations in Bermuda in the mid-1980s, and has maintained offices on Bermudiana Road. However, its holding company was always domiciled in the Cayman Islands until the firm moved to Ireland six years ago.
The company’s historical link to the island, and Bermuda’s success in obtaining Solvency II third-country equivalency from the EU, were factors in the decision to move from Ireland to Bermuda.
Continue Reading “XL Group completes redomestication to island” at Royal Gazette
Four leaders of Bermuda market groups quickly issued statements last week to allay any fears that the fallout from the UK’s Brexit vote would hit their market as well.
“In a global economy, Bermuda is affected, like other nations, by such major events,” said Ross Webber, CEO of the Bermuda Business Development Agency (BDA). “We stand ready to deal with myriad eventualities.”
OLDWICK, N.J.–(BUSINESS WIRE)–In this A.M.BestTV episode from The Risk Management Society’s (RIMS) annual meeting in San Diego, CA, Bermuda leaders cite the island’s status as being Solvency II equivalent, along with what they say are higher levels of scrutiny, as reasons why they should not be confused with domiciles that have drawn negative attention.
Click on http://www.ambest.com/v.asp?v=rims4416nc to view the entire program. “The insurance industry is the foundation of the Bermuda economy,” said Michael Dunkley, premier, Bermuda.
“Bermuda has worked very hard to be in that position, and through a close partnership with governments, current and past, members of the industry and Bermuda’s regulators, I think the country has created a unique environment where all work together in a very competitive environment to keep Bermuda in the forefront.”
Continue Reading “A.M. Best “TV at RIMS: Bermuda Leaders Say Differences Matter Among Offshore Domiciles” at A.M. Best News
When Bermuda reaches a world-class level in any field, it is something that should be celebrated. Last week, this scale of achievement occurred, but it would have gone unnoticed by many. There were no medals awarded, no pomp and ceremony.
That’s perhaps because the great accomplishment in question came in the unglamorous area of insurance regulation.
To the uninitiated, “Solvency II equivalence” sounds like something so complicated and arcane that it’s not even worth trying to understand.
However, this new status has profound relevance for this island, and not only in the tangible benefits that it provides for our flagship insurance industry and the many livelihoods it supports.We can also take heart from the manner in which it was achieved, a marathon team effort that transcended political rivalries and differences between public and private sectors to beat sizeable odds.
Continue Reading “Solvency II masterstroke: now that’s collaboration” at The Royal Gazette
It’s official: Bermuda has Solvency II third-country equivalency, as of today. That means the European Union considers the standard of the island’s insurance regulation to be equivalent to its own.
In November last year, the European Commission recommended that Bermuda should be considered as in line with the tough new insurance rules being adopted across the 28-country bloc.
A 90-day consultation period that gave member countries and the European Parliament the chance to have their say has now passed.
On March 4, the EC’s delegated decision on Bermuda’s equivalence with Solvency II was laid out in detail in the Official Journal of the European Union.
Continue Reading “Solvency II equivalence finally official” at The Royal Gazette
XL Group plc announced a proposal to change its parent holding company’s place of incorporation to Bermuda from Ireland. “Establishing our corporate home in Bermuda is a natural step for XL.
XL has had a presence in Bermuda since 1986, which grew significantly following the transformative transaction with Bermuda-based Catlin last year,” said
XL’s Chief Executive Officer, Michael S. McGavick, in a statement.
“A significant portion of XL’s business, in fact our largest operating subsidiary, has for decades been located in Bermuda and regulated by the Bermuda Monetary Authority…,” he said.
Continue Reading “XL Group Proposes Moving Domicile to Bermuda from Ireland” at Insurance Journal News
Malta, with its respectable number of insurance companies, is pushing ahead to attract quality not quantity, but of course the numbers are important and no effort is to be spared to expand the internal market. And it goes without saying that a number of jurisdictions are active to pursue Captive owners and reinsurance companies, to re-domicile.
So, one may ask in the context of Malta, what can be done to overcome the challenges ahead to attract more investors?
ArgoGlobal SE, which opened an office in Malta two years ago, was the first property/casualty insurance company to obtain a Societas Europaea licence from the Malta Financial Services Authority. Something that could act as a trailblazer, encouraging others to seek the same.
Continue Reading “Can Malta become the ‘Bermuda of the Mediterranean’?” at Malta Today
A.M. Best has issued a briefing report, which notes that “Bermuda moved one step closer to achieving Solvency II equivalence on November 26, 2015 when a delegated act regarding the equivalence of the supervisory regime for insurance and reinsurance undertakings in force in Bermuda was sent to the EU Parliament and Council for a three-month scrutiny period.”
Best explained that the “delegated act summarizes the conclusions of the European Insurance and Occupational Pensions Authority (EIOPA), who conducted a review of the solvency, supervisory, and prudential regimes of Bermuda, on Bermuda’s equivalence with Solvency II.
“The delegated act details Bermuda’s compliance with three articles of the European Directive commonly known as Solvency II, namely Reinsurance, Group Solvency, and Group Supervision. Provided the act is accepted, Bermuda’s equivalence with the provisions of Solvency II for insurance and reinsurers, with the exception of captives and special purpose insurers, takes effect January 1, 2016.”
Continue Reading “Best Reports Bermuda Inching Toward Solvency II Equivalence” at Insurance Journal News