BMA unveils regulatory changes to reinsurance industry fees

BMA unveils regulatory changes to reinsurance industry fees | Insurance Business America

The long-term sector has matured, says the junior finance minister


According to
Kenneth Araullo

The Bermuda Monetary Authority (BMA) has launched a major review of reinsurance/underwriting fees to reflect the evolving environment in the sector.

The update is part of the Bermuda Monetary Authority Amendment Bill 2023, introduced to the House of Representatives by Junior Minister of Finance Wayne Furbert.

In a report in The Royal GazetteFurbert explained that the BMA published two consultation papers in February and engaged extensively with industry groups before presenting the legislation to Members of Parliament (MPs). He emphasized that Bermuda’s long-term insurance sector has seen significant growth and maturity, which has necessitated more technical and comprehensive oversight.

The revised annual base fees are to be gradually implemented from 2024 to 2026.

Scott Pearman, representing the One Bermuda Alliance, expressed opposition support for the amendment and acknowledged the significant growth in the life insurance and reinsurance sectors.

Pearman and Premier David Burt spoke briefly about the time allotted to MPs to review the bill, which was introduced a week earlier. Burt noted the Treasury Department’s efforts to inform the opposition about the legislation and emphasized the importance of bipartisan cooperation on international trade issues.

Curtis Dickinson, a Progressive Labor backbencher and former insurance executive, spoke of the remarkable growth in the long-term sector over the past five years. He noted the BMA’s efforts to position itself to provide appropriate regulation and oversight in light of the industry’s rapid innovation and expansion.

Furbert also praised the extensive time spent on consultation and the legislative process, which took into account the time needed to implement the amendment. This overhaul represents a significant step in updating Bermuda’s regulatory framework to better meet the dynamic needs of the insurance industry.

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