The Bermuda Monetary Authority has launched its first formal consultation on a phased resolution regime for commercial insurers, advancing its previously identified work on resolution frameworks. The initial phase would designate the authority as the insurance resolution authority, establish statutory resolution objectives and define which insurers fall within scope. Requirements would be applied on a risk based and proportionate basis, drawing where feasible on existing supervisory, enforcement, recovery planning and provisional liquidation arrangements. The regime would initially cover domestic insurers and internationally active insurance groups for which the authority is group wide supervisor. The authority could also include locally licensed members of foreign incorporated internationally active insurance groups and other Bermuda domiciled commercial insurers whose failure could materially affect Bermuda’s financial stability or real economy. Not every insurer in scope would require a resolution plan. That determination would reflect factors including scale, complexity, substitutability, cross-border activity and interconnectedness. The proposed objectives are to protect policyholders and client assets, preserve financial stability and market confidence, and minimize the use of public funds, without a predetermined order of priority. Future phases will address resolution powers and tools, planning requirements, cross-border cooperation and safeguards, while legislative amendments would formalize the authority’s role, the objectives and the regime’s scope.
2026-09-15Bermuda Monetary Authority
Bermuda Monetary Authority launches consultation on first phase of commercial insurer resolution regime
The Bermuda Monetary Authority is consulting on the first phase of a resolution regime for commercial insurers, including its designation as resolution authority and a statutory set of resolution objectives. The risk based regime would initially cover domestic insurers and internationally active insurance groups under its group wide supervision, with discretion to include other systemically relevant firms. Later phases will address resolution powers, tools, planning, cross-border cooperation and safeguards.