Bermuda Insurance Amendment Act 2015 Factors In Solvency II Standards

The Bermuda Insurance Amendment Act 2014, renamed the Insurance Amendment Act 2015 (Amendment Act), was passed in the Senate in February 2015. The Amendment Act seeks to align Bermuda's insurance framework to take into account Solvency II standards and initiatives by revising the corporate governance requirements of insurers to make provision for the introduction and implementation of corporate policies and processes.

With the exception of the new section 15A (summarised below), which shall become operative on 31 December 2015, the Amendment Act became operative on 27 February 2015.

The Amendment Act amends the Insurance Act 1978 (Act) in several key areas as follows:

• Inserts the new section 15A which requires all insurers, on an annual basis, to deliver a declaration to the Bermuda Monetary Authority (BMA) confirming that they either meet or do not meet the minimum criteria for registration. Such criteria are further enhanced by virtue of the framework set out