The Bermuda Monetary Authority has launched a consultation on amendments to the Insurance Code of Conduct, the Insurance Group Supervision Rules 2011 and the Insurance Group Solvency Requirement Rules 2011, and has published Guidance on the Application of the Prudent Person Principle. The package would embed the Authority’s investment governance and risk management expectations into the insurer and group rulebooks, make consequential changes to the insurance group supervision framework, and extend conduct of business requirements beyond domestic retail business to Bermuda insurers that write retail business directly to individuals in Bermuda or overseas. For the prudent person principle, the proposed Code changes cover investment, liquidity and concentration risk, credit risk, self-assessment and outsourcing, while the Group Rules amendments would update provisions on conflicts of interest, investment and liquidity risk, contingent exposures and annual group solvency self-assessment. The new guidance applies to commercial insurers in classes 3A, 3B, 4, C, D and E and to insurance groups for which the BMA is group supervisor, with expectations spanning investment strategy, governance, outsourcing, asset-liability matching, valuation uncertainty, affiliated assets and derivatives. Separately, the conduct of business proposal would amend Section 8 of the Code so that all Bermuda registrants writing retail business directly to individual policyholders are in scope, while foreign affiliates and insurance groups remain outside that extension and insurers remain responsible for monitoring intermediaries. The prudent person guidance enters into force on publication. Under the proposals, the Code and Group Rules changes linked to the prudent person principle would take effect on issuance, with compliance by 31 December 2026 for in-scope insurers and insurance groups. Consequential changes tied to the group supervision enhancements would take effect 180 days after publication of the draft Group Rules and Group Solvency Rules, while the expanded conduct of business provisions would take effect on final issuance of the Code with a 180-day compliance period.
Bermuda Monetary Authority2026-06-09
Bermuda Monetary Authority consults on insurance code and group rule changes for prudent person standards and wider retail conduct coverage
The Bermuda Monetary Authority has launched a consultation on amendments to the Insurance Code of Conduct, the Insurance Group Supervision Rules 2011 and the Insurance Group Solvency Requirement Rules 2011, and has issued immediately effective Guidance on the Application of the Prudent Person Principle. The proposals would embed investment governance and risk management expectations into solo and group rulebooks, update group provisions on conflicts of interest, investment and liquidity risk, contingent exposures and solvency self-assessment, and extend conduct of business requirements to all Bermuda insurers writing retail business to individuals in Bermuda or overseas.