Reclassification deadline looms for long-term insurers
The Bermuda Monetary Authority (BMA) has reminded long-term insurers that the deadline to send in their applications for reclassification under new registration requirements is fast-approaching.
In order to comply with the Insurance Amendment (No.3) Act 2010 every insurance company currently registered as a long-term insurer life re/insurers must apply to the Authority by Friday to be reclassified within several recently-introduced new classes.
Shelby Weldon, the BMA’s director, insurance, licensing and authorisation thanked all the firms that had already submitted their applications.
“We appreciate the cooperation we have already received from the market for this reclassification process,” he said. “We wish to remind the firms who have yet to submit their applications to send them in prior to the end of this month.We do not wish any firms to find themselves in the unfortunate position of being in breach of the regulations.”
The reclassification is part of the Authority’s work to enhance solvency and reporting standards for long-term insurers. The BMA has been introducing new classification categories for these firms, whereas previously they have been placed in one class. The Authority is segregating these firms based on their risk profile, and this will allow it to further refine and apply the appropriate level of supervision to the different firms across the long-term sector.
In accordance with Section 31(4) of the Amendment Act, any long-term insurer that fails to apply for reclassification before September 30, 2011 may have its registration cancelled by the Authority.
For more information contact Leslie Robinson, assistant director, insurance licensing and authorisations, at lrobinson[AT]bma.bm or 295-5278.