The Bermuda Monetary Authority has confirmed plans to tighten disclosure requirements for commercial long-term insurers to improve transparency and strengthen policyholder protection.

The proposals, first put forward in December 2024, would require Class C, D and E insurers to publish more detailed information about their assets and liabilities. Domestic insurers are not included.

The BMA said the new regime aimed to make asset disclosures more accessible and comprehensive, while giving policyholders clearer insight into insurers’ investment portfolios.

Industry stakeholders largely supported the proposals, although some warned that the level of detail could exceed that required in peer jurisdictions and risk exposing proprietary investment strategies. Concerns were also raised about the volume of disclosure at the security-specific level, as well as the operational burden on run-off entities.

In its response, the BMA said it had benchmarked the proposals against global best practice and would only allow modified disclosures in “exceptional circumstances”. To avoid misinterpretation, the disclosure template will include a summary sheet and space for companies to explain their investment strategies.

The authority said it would publish draft rules and guidance “in due course” after further consultation.