Bermuda: Notification of the Amendment to the Insurance Act 1978

On 5 August 2019, the Amendment Act 2019 came into operation, amending the Insurance Act 1978. The Amendment Act makes provision for the supervision and regulation of two new classes of insurer, namely "Collateralised Insurers" and "Class IIGB", and for the supervision and regulation of a new category of insurance intermediary, namely the "insurance marketplace provider".

An insurance marketplace provider is aimed at addressing the growing interest in the establishment of InsurTech-related insurance market places.

This advisory will deal in broad terms with the requirements for the new classification of Collateralised Insurers, noting however that these remain subject to the detailed rules that are expected to be issued by the Bermuda Monetary Authority ("BMA") in the form of Guidance Notes. This new class of limited purpose insurer is a response to the increasing sophistication and scope of the insurance-linked securities ("ILS") market.

A Class IIGB Insurer is for those insurers who intend to conduct insurance business in an innovative manner, for instance, utilising digital assets. Unlike the existing Class IGB this is a non-sandbox innovation class and we would be happy to provide further details.

 

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BERMUDA
Jonathan BettsPartnerT +1 441 242 1511jonathan.betts@walkersglobal.com
Sarah Demerling PartnerT +1 441 242 1525sarah.demerling@walkersglobal.com
Peter DunlopPartnerT +1 441 242 1524 peter.dunlop@walkersglobal.com

HONG KONG
Andy RandallManaging PartnerT +852 2596 3305andy.randall@walkersglobal.com

IRELAND
Garry FergusonManaging PartnerT +353 1 470 6659garry.ferguson@walkersglobal.com

SINGAPORE
John RogersManaging PartnerT +65 6595 4673john.rogers@walkersglobal.com