The world’s leading domicile for captive insurers will not apply Solvency II requirements to the captive businesses domiciled there, the Bermuda Monetary Authority (BMA) announced.
Solvency II equivalency will require captives to conform to rules about capital levels that must be maintained by insurance businesses within the European Union.
“We can definitively state that Bermuda will not apply any Solvency II-type regime to the captive sector,” BMA CEO Jeremy Cox says in a statement. “We will introduce a risk return as part of consolidated annual filing for captives that they will submit electronically, which will create efficiencies in the process for both the market and the Authority.”
Cox continues, “It’s good for Bermuda and the market that we can make this decision based on the proven appropriateness of our regime for captives. This step reflects our ability to take independent decisions on regulatory change at a pace that’s right for Bermuda and according to what makes sense for our diverse market, while taking into account achieving global recognition for our supervisory regimes.”
The BMA will still contribute to international developments in insurance-industry regulation and maintain strong ties to key regulators abroad while emphasizing the independence of the Bermuda market, Cox adds.
Bermuda does business with about 1,200 international insurers and reinsurers and maintains about 900 captive insurance companies within the domicile.
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