Insurance Initiatives in the Bermuda Monetary Authority 2026 Business Plan

The Bermuda Monetary Authority (BMA) published its 2026 Business Plan on 22 January 2026 outlining its objectives for the year.  This article will focus on the insurance initiatives.  The BMA stated it will continue to strengthen its regulatory and supervisory oversight in the insurance sector with a goal to move towards more efficient, streamlined regulation by simplifying processes and enhancing speed to market.

The following are the insurance specific initiatives:

• Transposing and embedding the Common Framework for Internationally Active Insurance Groups (IAIG) (ComFrame) and the Holistic Framework (HF) for systemic risk into the Bermuda commercial regulatory regime

Adopted by the IAIS in 2019, the ComFrame and the HF provide comprehensive, global standards for insurance supervision. ComFrame ensures effective, group-wide supervision of IAIGs, while the HF addresses systemic risk through sector-wide monitoring rather than focusing solely on individual entities.

• Focusing on climate change and its impact on insurers’ risk management, as well as responsible solutions for global weather and other catastrophe-related protection gaps

This initiative builds on work the BMA has been doing in the area of climate risk over the past several years.  The BMA updated the Insurance Code of Conduct in 2022 to incorporate ESG, which includes climate risk, to be incorporated into the governance and risk management practices.  A Guidance Note entitled “Management of Climate Risks for Commercial Insurers” was published in March 2023 and a Discussion Paper entitled “Disclosure of Climate Change Risks for Commercial Insurers” was published February 2024.  The BMA conducted a broader ESG Survey resulting in publishing a Sustainability Results Report in May 2024.  It is anticipated that the BMA will publish a discussion paper on climate finance risks this year.

• Continuing to strengthen the insurance group supervision regime

This initiative will build on the consultation paper that was released last year outlining proposed enhancements to the group supervision framework, and which has been implemented by amendments to the Insurance Act 1978 earlier this year.  Further details can be found in Kennedys’ bulletin here.

• Enhancing collaboration with major jurisdictions and standard-setting bodies while increasing awareness of the BMA’s regulations through Bermuda market reports, whitepapers, surveys, data calls and thought-leadership articles on relevant issues

This initiative will contribute to the BMA’s vision to operate as a globally respected financial services regulator and protect Bermuda’s reputation as a highly respected international financial center.

• Providing further guidance on the application of the prudent person regime for investment management

This initiative will continue the work begun last year when the BMA published a Consultation Paper on Proposed Instructions and Guidance on the Application of the Prudent Person Principle (PPP).  Further details regarding this consultation paper and the PPP can be found in Kennedys’ bulletin here.  

• Implementing enhanced public disclosure requirements on investments for the long-term commercial insurance market

This initiative began with a December 2025 consultation paper, Proposed Enhancements to Public Disclosure Regime.  The Insurance (Prudential Standards) (Class C, Class D and Class E Solvency Requirement) Amendment Rules 2025, which came into operation on 1 January 2026, inserted new paragraphs 7A and 7B which relate to the Asset and Liability Statement and a declaration regarding the Asset and Liability Statement.  Currently a draft Asset and Liability Statement template with accompanying instructions have been circulated by the BMA.

Further details regarding public disclosure requirements can be found in Kennedys’ bulletin here.

• Proposing enhancements to insurer management and governance accountability

This initiative will also build on the PPP and further develop the operational resilience and outsourcing framework that is excepted to become effective in 31 March 2028.  Further details regarding operational resilience and outsourcing can be found in Kennedys’ bulletin here.

• Enhancing the relevant regulatory frameworks to facilitate the supervision of new prudential and conduct requirements consistent with international standards

The BMA plans to expand the “conduct of business” rules (which currently apply only to domestic retail business (Bermuda-resident policyholders)) to international retail business.

• Introduction of a new class of insurer, the Parametric Special Purpose Insurer Class  (PSPIs).  

This new class of insurer is designed to support Bermuda’s alternative capital (re)insurers that plan to adopt parametric business models.  Further details regarding PSPIs can be found in Kennedys’ bulletin here.  

In addition to the insurance initiatives discussed above, the BMA also will continue to support responsible innovation across the financial ecosystem.  Specifically, the BMA will apply automation and deploy tools to integrate technological advancements in the supervisory process.  The BMA will develop framework for the responsible use of AI in the financial sector.  Finally, the BMA will continue to undertake enforcement action to protect the public’s interest and to ensure that entities are not conducting regulated activity without being appropriately licensed or registered.