Financial Crime World

BERMUDA LONG-TERM INSURANCE MARKET ANALYSIS AND STRESS TESTING REPORT

Date: January 24, 2023

The Bermuda Monetary Authority (BMA) has published its Long-Term Insurance Market Analysis and Stress Testing Report for the year ending December 31, 2022. The report highlights the stability of the long-term insurance market in Bermuda, with a strong capital base and adequate provisioning.

KEY FINDINGS

Market Stability

  • The BMA’s analysis of the long-term insurance market found that it has maintained its strength and stability over the past year.
  • Capital adequacy ratios remain strong, with most insurers maintaining adequate capital buffers to absorb potential losses.

Provisioning and Stress Testing

  • Provisions for policyholder liabilities are adequate, ensuring that insurers can meet their obligations in the event of a stress scenario.
  • Stress testing exercises revealed that the market is resilient to potential shocks, including changes in interest rates and investment returns.

REGULATORY CHANGES

The BMA has announced several regulatory changes aimed at strengthening the insurance sector:

Fees and Business Fees

  • Introduction of new fees payable by registered and designated persons, as well as annual business fees payable by insurers for 2024-2026.

Investment Fund Offering Document Rules

  • Amendments to provide for late fees to be paid by operators of investment funds that fail to publish updated offering documents or make them available to participants.

INTERNATIONAL AFFAIRS

The BMA has been actively engaged in international affairs, participating in several high-profile meetings and conferences:

International Association of Insurance Supervisors (IAIS)

  • Committee meetings and Annual Conference in Tokyo, Japan.

Financial Stability Board Regional Consultative Group Americas

  • Meeting in Lima, Peru.

Global Financial Innovation Network

  • Coordination Group and annual meeting hosted in Washington, D.C.

CONTACT

For more information on the BMA’s Long-Term Insurance Market Analysis and Stress Testing Report, or to learn more about regulatory changes affecting the insurance sector, please contact:

Bermuda Monetary Authority BMA House 43 Victoria Street, Hamilton HM 12, Bermuda P.O. Box 2447, Hamilton HM JX, Bermuda Tel: (441) 295-5278 Fax: (441) 292-7471 Email: enquiries@bma.bm Website: www.bma.bm