The Bermuda Monetary Authority has invited the insurance industry and other interested persons to provide commentary on the proposals set out in a guidance note relating to segregated accounts.

The authority publishes formal consultation papers to industry as part of the development process for it's continuing enhancements to Bermuda’s regulatory framework.

The BMA said the guidance note seeks to provide clarity to ensure relevant stakeholders have a sound understanding of the regulatory regime for segregated account and separate account companies in Bermuda.

It outlines the authority’s expectations of companies that use segregated accounts and separate accounts to conduct regulated insurance business.

A statement said the BMA seeks to ensure the manner in which insurance business is conducted through segregated accounts and separate accounts gives policyholders an appropriate level of policyholder protection that is consistent with the policyholders of insurers that are not conducting insurance business in segregated accounts and separate accounts.

With an effective date of January 1, 2025 for the new policy, commentary on the proposals is expected by September 30.

• For more on the consultation paper, see Related Media

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2024-07-05-09-36-39-Notice-CP-GN-General-Business-Insurers-with-Segregated-Accounts-and-Separate-Accounts.pdf