Bermuda's financial regulators will today examine one of the Island's major insurance companies in co-operation with their counterparts from other countries where that company does business.

The procedure, effectively a cross-border swapping of notes among regulators, is known as a "supervisory college".

Matthew Elderfield, chief executive officer of financial regulator the Bermuda Monetary Authority (BMA), said this event was a first for Bermuda in the insurance sector, although a supervisory college had been held on the banking side recently.

A second Bermuda international insurer will be subject to a supervisory college on Thursday and a third next Monday. Mr. Elderfield said he could not reveal the identities of the firms, but that they were "three leading insurance companies".

Organising the colleges helps the BMA in its quest to earn "regulatory equivalence" with the European Union, ahead of the implementation of tighter regulation of the insurance sector through the Solvency II rules, due to apply from 2012.

The global financial crisis has seen some world leaders, notably French President Nicolas Sarkozy, calling for a new international "financial architecture", involving more international co-operation between authorities.

International organisation the Financial Stability Forum also expressed support for the expanded use of supervisory colleges and a greater cross-border exchange of information, in a report presented to leaders of seven the world's largest economies at a G7 summit earlier this month.

Mr. Elderfield revealed plans for the supervisory college to an international business audience at the Brown Brothers Harriman insurance seminar at the Fairmont Hamilton Princess last Friday morning. In an interview, he explained what the colleges would entail.

"Some regulators will be flying in and some will be joining us in a teleconference format," Mr. Elderfield said. "The company in question will present for half a day, looking at aspects like enterprise risk management, response to crisis and issues like strategy.

"The firm withdraws and then the Authority presents on its work with the company. There is then a round-table discussion with all the regulators exchanging views. This is a good initiative as a way to nurture cross-border co-operation."

Mr. Elderfield added that the need for more exchanging of information between regulators in different countries was one of the lessons learned from the world financial crisis.

During Friday's seminar, Mr. Elderfield also said that the BMA was working with an industry task force, which will report to the Authority next month, on enhanced disclosure of risk metrics.

Although he said it was too early to detail what this would entail, it would probably include indications of exposures to underwriting, market and credit risks.