Insurance Update: Summary of the Insurance Amendment Acts of 2006

Recent legislative amendments in Bermuda have bolstered the powers of the Bermuda Monetary Authority ("the BMA"), the independent body charged with the supervision and regulation of the financial services industry on the island.

The Insurance Amendment Act 2006 (the "Amendment Act"), which became effective on 24 July 2006, and the Insurance Amendment (No. 2) Act 2006 (the "Second Amendment Act"), which became effective on 29 December 2006, both amend the Insurance Act 1978 (the "Act").

The Amendment Act gives the BMA new or strengthened powers to supervise and investigate persons in the insurance industry, including insurers and insurance managers. It also requires the BMA to publish a statement of principles setting out how it is going to exercise its powers under the new legislation.