Bermuda Monetary Authority implements annual and five-year auditor checks for segregated and separate account general business insurers

The Bermuda Monetary Authority has prescribed agreed upon procedures for limited purpose and commercial insurers holding general business insurance licences with segregated or separate accounts. Approved auditors must perform the procedures separately from the statutory audit and file their factual findings with the annual Statutory Financial Return. The framework is intended to verify cell-level balances and disclosures without providing an audit opinion or conclusion. Annual procedures cover the maintenance and reconciliation of cell accounting records, reserves, collateral and letters of credit, including checks that assets and liabilities are attributed to the correct cell and are not commingled. Additional collateral and letter of credit checks must be completed on a rolling five-year cycle, with each rotational procedure performed for every cell at least once during that period. Auditors must also recalculate the full Schedule of Segregated Accounts, verify required inputs, identify cell deficits and confirm the existence of remediation plans, and confirm completion of the Principal Representative Attestation.