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BMA extends code compliance deadline

The Bermuda Monetary Authority has extended the transition period for insurers to ensure their companies are fully compliant with the Insurance Code of Conduct to July 1, 2011.Subsequent to that date, the Authority will evaluate insurers’ compliance with the code as part of its regular prudential supervision and on-site reviews of insurance companies.Shelby Weldon, director, licensing and authorisation, insurance, said: “This extension is in recognition of the complexities involved for firms making the necessary operational adjustments to meet the enhanced requirements of the code. It also provides a further opportunity to ensure insurers fully understand how those requirements will be applied in a proportionate manner across the industry; the Authority will issue further guidance to the market in that regard by 31st March 2011.”The code formally came into effect on July 1, 2010 and applies to insurers registered under Section 4 of the Insurance Act 1978. It was developed after an extensive period of consultation with industry participants and builds upon and codifies the governance standards already established within the jurisdiction and further strengthens the standards of regulation in place for Bermuda’s insurance sector.The code establishes duties, requirements, and standards to be complied with by re/insurers, including the procedures and sound principles to be observed by firms. Key issues addressed in the code include; corporate governance, risk management, governance mechanisms, outsourcing and market discipline and disclosure.For more information e-mail policy[AT]bma.bm