The Bermuda Monetary Authority has published a consultation on proposed amendments to the Insurance Code of Conduct, the Insurance (Group Supervision) Rules 2011 and the Insurance (Prudential Standards) (Insurance Group Solvency Requirement) Rules 2011. The proposals would incorporate expectations on the Prudent Person Principle, make consequential changes to the insurance group supervision framework and expand conduct of business requirements beyond domestic retail business to certain international retail business written by Bermuda insurers. For the Prudent Person Principle, the amendments affect the Code provisions on investment, liquidity and concentration risk, credit risk, self-assessment and outsourcing, alongside related changes to the Group Rules. The accompanying guidance sets expectations for investment strategy, investment risk management, governance, outsourcing of investment-related services, asset-liability matching, diversification, complex and non-publicly traded assets, affiliated and related-party exposures, and derivatives. In-scope insurers, covering Classes 3A, 3B, 4, C, D and E, and insurance groups for which the BMA is group supervisor would be expected to comply with the Prudent Person Principle amendments by Dec. 31, 2026. The group supervision amendments include changes linked to designated insurance holding companies and group solvency self-assessment requirements, with the relevant Group Rules and Group Solvency Rules amendments proposed to come into operation 180 days from publication of the draft rules. The conduct of business expansion would apply to Bermuda insurers that directly write retail business to individual policyholders, wherever those policyholders are located, while excluding foreign affiliates of Bermuda registrants and insurance groups. In-scope insurers would have 180 days from final publication of the Code amendments to comply, and comments are due by July 27, 2026.
Bermuda Monetary Authority2026-06-09
Bermuda Monetary Authority consults on insurer prudent person, group supervision and conduct of business amendments
The Bermuda Monetary Authority is consulting on amendments to its insurance conduct, group supervision and group solvency rules. The proposals embed Prudent Person Principle expectations, update group supervision requirements and extend conduct of business rules to Bermuda insurers writing retail business directly to individuals overseas. Comments are due by July 27, 2026.