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
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
The Bermuda Monetary Authority’s (BMA) final push to gain Solvency II equivalence has led to the adoption of a group Economic Balance Sheet (EBS) in 2016.
The assessment of required and available capital against an economic view of company net assets underpins many of the regulatory changes that have taken place globally in recent years.
A BMA spokesman said: “EBS will supplement the authority’s existing group risk-based capital requirement, own risk and solvency assessment (ORSA) and other risk management and governance components which comprise the group prudential return.
Continue Reading “BMA push tips the balance in favour of Solvency II equivalence” at Intelligent Insurer News
The European Insurance and Occupational Pensions Authority [EIOPA] published an updated progress report regarding Bermuda’s Solvency II equivalence assessment.
This updated report takes into account substantial amendments to the regulations applicable to commercial [re]insurers introduced by the Bermuda Monetary Authority since EIOPA’s last report was published in March 2015.
The European Commission considered that a further progress report was necessary in order for it to take fully informed equivalence decisions later this year.
Continue Reading “EIOPA Publishes Report: Bermuda Solvency II” at Bernews
(BestWire) Despite some emerging concerns regarding implementation of European Union Solvency II requirements, the Bermuda Monetary Authority will continue efforts to meet an EU equivalency standard that is part of the directive, said Shelby Weldon, BMA director of insurance, licensing and authorisation.
Bermuda is one of several nations seeking to meet the equivalency standard for commercial entities under Solvency II, an update of an earlier suite of rules designed to help reduce the risk of insolvency.
The equivalency standard states that any non-EU company operating in the Union should come from a domicile whose rules are recognised by EU members as equivalent to those in Solvency II.
Continue Reading “BMA director: Bermuda Moving Toward EU Equivalency Standard Despite Solvency II Questions” at The Royal Gazette Online
The world’s leading domicile for captive insurers will not apply Solvency II requirements to the captive businesses domiciled there, the Bermuda Monetary Authority (BMA) announced.
Solvency II equivalency will require captives to conform to rules about capital levels that must be maintained by insurance businesses within the European Union.
Continue Reading “BMA: Bermuda Won’t Adopt Solvency II Requirements for Captives” at Property Casualty 360 News
Bermuda is on track to win Solvency II equivalence, says the Bermuda Monetary Authority (BMA) following high-level talks with European Commission officials in Brussels earlier this month.
The BMA is also optimistic that exemption of captive insurance companies in Bermuda from the Solvency II provisions will be honoured.
Solvency II, a new set of EU regulations, will introduce enhanced capital and corporate governance requirements for the insurance industry.
Continue Reading “BMA Confident of Solvency II Equivalence after Brussels Talks” at The Royal Gazette Online