BMA Extends Code Compliance Deadline
The Bermuda Authority is extending the transition period for insurers to ensure their companies are fully compliant with the Insurance Code of Conduct. The revised deadline for compliance is 1st July 2011.
Subsequent to that date, the Authority will include evaluation of insurers’ compliance with the Code as part of its regular prudential supervision and on-site reviews of insurance companies.
Shelby Weldon, Director, Licensing and Authorisation, Insurance said, “This extension is in recognition of the complexities involved for firms making the necessary operational adjustments to meet the enhanced requirements of the Code. It also provides a further opportunity to ensure insurers fully understand how those requirements will be applied in a proportionate manner across the industry; the Authority will issue further guidance to the market in that regard by 31st March 2011.”
The Code formally came into effect on 1st July, 2010 and applies to insurers registered under Section 4 of the Insurance Act 1978. It was developed after an extensive period of consultation with industry participants and builds upon and codifies the governance standards already established within the jurisdiction and further strengthens the standards of regulation in place for Bermuda’s insurance sector.
The Code establishes duties, requirements, and standards to be complied with by (re)insurers, including the procedures and sound principles to be observed by firms. Pertinent issues addressed in the Code include; corporate governance, risk management, governance mechanisms, outsourcing and market discipline and disclosure. It also has been drafted to ensure proportionality; therefore the requirements are commensurate with the size, nature, complexity and risk profile of the insurer.
Any questions regarding the Code or the extension of the transitional period to reach compliance should be
sent in writing via e-mail to policy@bma.bm
