The Bermuda Monetary Authority (BMA) publishes its regulatory update for the quarter ended 30 June 2026, setting out consultations, reporting guidance, reports and international engagement across April to June. The insurance-specific consultation of the quarter came on 9 June 2026, when the authority issued a consultation paper on proposed amendments to the Insurance Code of Conduct, the Insurance (Group Supervision) Rules 2011 and the Insurance (Prudential Standards) (Insurance Group Solvency Requirement) Rules 2011. The proposed amendments relate to the BMA’s expectations for insurers when adopting the prudent person principle, enhancements to the Insurance Group Supervision Framework, and expansion of the scope of the conduct of business regulatory framework. Industry and other stakeholders were invited to provide feedback by 27 July 2026. A stakeholder letter on proposed instructions and guidance on the application of the prudent person principle was published on the same date, summarising stakeholder feedback and the BMA’s responses on the 2024 consultation paper. For Bermuda-domiciled captives, the group supervision and prudent person elements are the items to watch. While the proposals are directed at commercial insurers and insurance groups, changes to the group supervision framework carry read-across for captives forming part of a wider supervised group, and the conduct of business expansion sets the direction of travel on scope. The authority also published a discussion paper on potential banking models for Bermuda on 2 June 2026, seeking feedback on reform initiatives aimed at enhancing the efficiency, inclusiveness and continued stability of the island’s banking sector. Stakeholders were requested to submit feedback by 1 August 2026. A consultation paper on proposed amendments to the Banks and Deposit Companies Act 1999 followed on 3 June 2026, issued alongside an illustrative draft of the Banks and Deposit Companies Amendment Bill 2026. A consultation paper on asset tokenisation was published on 9 April 2026, presenting targeted regulatory proposals informed by stakeholder input and international developments. Feedback closed on 30 June 2026. A stakeholder letter accompanying the consultation paper on sustainability disclosures and prohibition on the use of misleading fund names was published on 1 April 2026, with respondents seeking clarification of terms and definitions and emphasising the importance of a proportionate approach to disclosure requirements. Reporting forms and guidance issued during the quarter include the Insurance Manager Annual Return 2026 and the Brokers and Agents Annual Return 2026, both published on 17 April 2026. The discount rates for 31 March 2026 were published on 15 April 2026, and the 2026 quarterly financial return templates for property and casualty and for long-term business were both published on 8 May 2026. Also issued were the Trusts Minimum Liquidity Net Assets Return and the IBA Minimum Liquidity Net Assets Return on 9 April 2026, the SBA scenario template example on projected yield curves on 6 May 2026, and the digital asset business exemption, modification and licence variation form on 16 June 2026. On 30 April 2026 the BMA published its report on liquidity risk in the Bermuda long-term insurance market for year end 2024. The report covers regulatory requirements, liquidity risk management practices observed in Commercial Insurers’ Solvency Self-Assessment submissions, investment allocation and stress-testing results, and provides updated analysis based on year-end 2024 data. The findings demonstrate that Bermuda’s long-term insurance sector maintains strong resilience against potential liquidity stresses, supported by prudent asset allocation strategies and robust risk management frameworks. On the international side, BMA deputy chief executive officer Shanna Lespere was elected vice chair of the International Organization of Securities Commissions (IOSCO) Inter-American Regional Committee in April 2026. Lespere also joined the IOSCO board as part of the role. Also in April 2026, the authority presented Bermuda’s approach to supervising special purpose insurers at the OECD Roundtable on Insurance and Pensions in Colombo, Sri Lanka. Special purpose insurers sit adjacent to the captive and alternative risk transfer segment, and Bermuda’s supervisory approach to them is a recurring point of interest for sponsors weighing the domicile. The BMA participated in the International Association of Insurance Supervisors (IAIS) Executive Committee meeting held in Basel on 30 June and 1 July 2026. Agenda items included approval for publication of application papers on resolution powers, preparation and plans, and on recovery planning, alongside the mid-year Global Insurance Market Report 2026. Bilateral meetings during the quarter included engagements with the Federal Insurance Office, the US Department of the Treasury, the New Jersey Department of Banking and Insurance, HM Treasury and the Hong Kong Insurance Authority. The authority hosted the 2026 BMA Forum, titled Charting the Course, Managing Risk and Complexity in a Rapidly Evolving Landscape, in Hamilton in April 2026, and participated in panel discussions at the Association of Bermuda Insurers and Reinsurers Risk Forum, also held in Hamilton.
