Refinements To The Bermuda Solvency Capital Requirements

On 1 January 2014, a number of amendments to Bermuda's insurance legislation became effective. The main focus of the amendments is the Bermuda Solvency Capital Requirements (BSCR). The BSCR is applicable to all commercial class insurers.

Proposals were subsequently put forward by the Bermuda Monetary Authority (BMA) to include long-term insurers and insurance groups, subject to the Insurance (Group Supervision) Rules 2011. The BMA identified elements of the BSCR for long-term insurers that warranted refinement to more effectively reflect the underlying risks. Refinements (BSCR Refinements) to the long-term insurance BSCR address several broad areas covering:

• investment risks;