The bill provides an update to the state’s cell legislation, enabling a captive insurance company to be converted into an unincorporated cell, with all of its assets, rights, benefits, obligations and liabilities remaining unaffected by the process.
Insurance Europe has urged the European Commission (EC) to adhere to the established political consensus and EU targets during the technical discussions of the Solvency II review.
The commissioner will be authorised to impose additional conditions on captives related to capital and surplus to ensure the solvency and efficient operations of captives.
Fitch anticipates that while the majority of insurers will remain in Bermuda, some on the margin may prefer other regulatory regimes with less strict capital standards.
Under the act, premiums written above US$60 million will be taxed at a rate of 0.02 per cent, instead of the five per cent rate that applied previously.
This proposal follows the mention of micro-captives on its 2023 list.
The measure targets captive insurance entities, which often operate outside their business's state, bypassing local insurance companies and agents.
