Expanded scope for Insurance Act
The scope of companies required to register under the Insurance Act is set to expand if legislation introduced by Government in the House of Assembly is passed.
The Insurance Amendment (No 2) Act 2020 requires an incorporated segregated accounts company to register under the Act where it has established any incorporated segregated accounts that intend to carry on insurance business.
In such circumstances, the amending legislation says, the incorporated segregated accounts company “shall also be deemed as intending to carry on insurance business”.
The Bermuda Monetary Authority, the supervisor for insurance companies registered on the island, will determine the appropriate class of registration for incorporated segregated accounts companies covered by the new provisions.
The amending legislation provides that the BMA, in making that determination, is to consider the “nature of the intended relationship” between the company and the account that it established to carry on insurance business as well as the nature of the insurance business to be carried on.
The House of Assembly will next sit on November 27.