Balancing Innovation And Stability: Bermuda Monetary Authority's Stance On Affiliate Investments

A new approval process for affiliate investments forms a key part of the Bermuda Monetary Authority's enhanced regulatory regime for long-term insurers and reinsurers.

The change to the technical provisions that govern long-term insurers and reinsurers was first raised in a consultation paper issued by the BMA last July.

That consultation period has now ended and the changes proposed therein are now operative through the applicable legislation.

Under the new technical provisions, Bermuda-regulated long-term insurers and reinsurers are required to obtain prior BMA approval for all "assets" with economic credit exposure to an affiliate, related parties, or connected parties of the insurance group.