The new Section 6G of the Insurance Act 1978, as amended, came
into effect on May 30 last year, allowing the BMA to require
certain insurers — Classes 3A, 3B, 4, C, D, E, and insurance
groups — to prepare a recovery plan in accordance with
certain rules.
In April, the BMA released the Insurance (Prudential Standards)
(Recovery Plan) Rules 2024, which set out detailed requirements for
applicable insurers in relation to their recovery plans.
The introduction of these new recovery rules represents a
significant step in fortifying the resilience of commercial
insurers against potential financial distress.
These measures are designed to protect policyholders, promote
market stability and bolster the overall health of the insurance
industry.
