The Bermuda Monetary Authority published the results of its 2025 Global Financial Crisis (GFC) stress test for Bermuda’s long-term commercial insurers, concluding that the sector holds adequate aggregate capital buffers and that most entities could withstand the prescribed severe stresses without relying on management actions. It assessed that current exposures and capitalisation do not pose a threat to financial stability in Bermuda’s long-term market or the global life insurance market. The report flags areas for continued attention and monitoring, including robust recovery planning and capital management frameworks. Data collected on assets and liabilities will be used to refine the Authority’s risk-based supervisory approach and focus resources on entities and risk areas showing greater vulnerability. A treaty-level recapture analysis also provided insight into potential cross-border transmission channels intended to inform future supervisory cooperation with international counterparts. The Authority will continue to engage with industry participants to address the findings.
Bermuda Monetary Authority 2025-09-17
Bermuda Monetary Authority reports long-term insurers hold adequate capital buffers in 2025 Global Financial Crisis stress test
The Bermuda Monetary Authority's 2025 Global Financial Crisis stress test results show Bermuda’s long-term commercial insurers have adequate capital buffers, enduring severe stresses without management actions. The report emphasizes ongoing recovery planning and capital management, with data refining risk-based supervision. A treaty-level recapture analysis provides insights into cross-border transmission channels for future international supervisory cooperation.