Insurance activity in Bermuda is governed by the Insurance
Act of 1978 and various amendments and regulations. Some
of the Act's key requirements for non-life insurers are:
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- A company must be registered under the Act
before it can carry on business in Bermuda.
- Every insurer must appoint and maintain a Principal
Representative in Bermuda. The Principal
Representative is a corporation or individual who
is resident in Bermuda and who can represent the
company.
- Every insurer must appoint an auditor to report
on the company's annual financial statements and
Statutory Financial Return.
- Companies must meet minimum capital and solvency
requirements as required under the terms of their
licences.
- Insurers must maintain "relevant" or
liquid assets equal to at least 75% of their liabilities.
- A Statutory Financial Return must be prepared
annually. This return is filed with the Bermuda
Monetary Authority (BMA) but is not available for
public review.
- A company whose gross premiums from professional
liability insurance constitute more than 30% of
gross premiums written is required to appoint a
Loss Reserve Specialist who must annually certify
the adequacy of loss reserves.
- Companies that discount their loss reserves must
provide details of the methodology and rationale
for discounting and annual actuarial opinion on
the discounted reserves if the captive has not
met its general business solvency margin on an
undiscounted basis.
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