Beefing up the regulating of Bermuda?s insurance industry to satisfy the International Monetary Fund and the International Association of Insurance Supervisors has been given the backing of MPs. The Island?s success as a home for multi-million dollar insurance and reinsurance business has put it under increasing levels of scrutiny from other countries and international bodies.

To maintain its reputation as a place where such businesses operate in a proper and legal fashion, the Insurance Amendment Act 2006 is bringing tighter controls and tough penalties for those who break the rules or attempt to obstruct investigations into financial malpractice or deception.

Fines up to $200,000 are enshrined in the new act for those who commit a variety of offences.

If, for example, a controller of an insurance company is deemed to be unfit for such a position by the Bermuda Monetary Authority, but defies a notice to relinquish that position, they can be fined $25,000 and an additional $500 for each day that they continue to commit that offence.

The tougher measures were outlined by as she introduced the Bill to MPs. She said it was important for Bermuda to have an enhanced insurance regulatory regime.

And Ms Cox said she had been surprised to find that some of the bigger financial companies in the sector ?were supportive of our regulatory regime having ?teeth?.?

She added: ?It?s extraordinary to see and hear there is much more embracing of the idea for Bermuda to be seen to protect its reputation by being regulated in an appropriate way.? said there was a challenge for Bermuda with its different classes of insurance and reinsurance companies, ranging from the smaller class one and two businesses to those in class three and class four in the $100 million capital range.

He said Bermuda was losing ground with its class one and two insurance companies to other jurisdictions, such as the Cayman Islands and the US, and wondered if there might be a need for different legislation for those two classes of insurers.

Dr. Gibbons also expressed concern at the ?diminution of the clout of the Insurance Advisory Committee.?

In response Ms Cox said that while it was important that a dialogue and relationship ?of sorts? with the IAC was kept, the Bermuda Monetary Authority must not be ?the lapdog of the industry? or lose any of its credibility as a regulator because of close association with industry?s advisory committee. wanted to know whether it would be a company or the individual who would be liable for fines such as in the instance of an insurance company controller being deemed unfit and given notice to relinquish their position but continuing to ignore the notice and accrue a $25,000 fine and further $500 fines for each subsequent day they ignored the BMA?s notice.

Ms. Cox said the aim was to have the individual liable for the fines.