The Bermuda Monetary Authority confirmed that it will not apply a Solvency II-style regulatory regime to captives.
In setting out its 2013 business plan Tuesday, the BMA said that while the regulator plans to implement refined reporting requirements for captives, it would not apply Solvency II-equivalent rules to captives.
“We can definitively state that Bermuda will not apply any Solvency II-type regime to the captive sector,” said Jeremy Cox, CEO of the BMA. “We will introduce a risk return as part of a consolidated annual filing for captives that they will submit electronically, which will create efficiencies in the process for both the market and the (BMA),” he added.
Bermuda is developing a regulatory regime for insurers and reinsurers that is intended to be equivalent to Solvency II, the risk-based capital regulatory regime for insurers and reinsurers in the European Union slated for introduction in 2016.