A bill tightening up the regulation of Bermuda?s insurance business was passed with all-party support in the House of Assembly on Friday.

The Insurance Amendment Act 2004 came out of the IMF assessment of Bermuda and gives the Bermuda Monetary Authority more scope to function as an independent regulator said Finance Minister Paula Cox.

She said it gave whistleblowing powers by explicitly setting out the obligations for approved auditors to communicate certain matters as well as giving them protection.

She said the bill was effective, appropriate for the scope of Bermuda business and consistent with evolving international standards. It had been drawn up after much consultation said Ms Cox.

It gives further clarity to the the appointment and revocation of auditors and loss reserve specialists, as well as giving the precise definitions.

The bill will also gives the BMA a formal power to issue guidance as to the duties, requirements and standards to be complied with and the procedures to be followed by persons registered under the act.

A principal representative must now write to the BMA if he thinks the insurer for which he acts is likely to become insolvent.

The BMA will have the power to appoint an auditor where the insurer fails to do so while the insurer must give notice to the BMA where such an insurer plans to remove its auditor. Opposition leader Grant Gibbons said he backed the act but questioned why there had been a delay in the promised IMF report which had been slated for release in September. Ms Cox said this reflected the enthusiasm and input from BMA staff and said of the 44 jurisdictions reviewed by the IMF only 24 have had their reports released.