The Bermuda Monetary Authority is soliciting feedback on the rules that will govern its recovery plan initiative for the island’s commercial insurance sector.

Bermuda’s financial services regulator is to establish recovery planning rules aimed at strengthening its prudential framework.

The rules are meant to ensure that insurers prepare for a range of possible adverse situations ahead of any severe stress condition.

Ultimately, the BMA said, this should assist insurers in taking effective and thoughtful measures in a timely manner in crisis situations without unnecessary pressure.

The BMA aims to use the recovery planning rules to formalise its oversight of recovery planning to ensure that it has the appropriate powers to identify and assess an insurer’s options to recover financial strength and viability under severe stress.

The BMA has published a consultation paper on its website, and now invites stakeholders to contribute their views on the proposed rules.

Stakeholders should send comments to FSRD@bma.bm no later than the close of business on July 21.