The Bermuda Monetary Authority (BMA) has initiated a significant overhaul of re/insurance industry fees to align with the evolving landscape of the sector.
The update is part of the Bermuda Monetary Authority Amendment Act 2023, presented to the House of Assembly by junior finance minister Wayne Furbert.
In a report by The Royal Gazette, Furbert explained that the BMA had published two consultation papers in February and engaged extensively with industry groups before introducing the legislation to the Members of Parliament (MPs). He emphasized that Bermuda’s long-term insurance sector had experienced substantial growth and maturation, necessitating more technical and complex oversight.
The revised annual base fees are set to be gradually implemented from 2024 through 2026.
Scott Pearman, representing the One Bermuda Alliance, expressed the Opposition’s support for the amendment, acknowledging the significant growth within the life insurance and reinsurance sectors.
Pearman and Premier David Burt had a brief exchange regarding the time allocated to MPs to review the Bill, which was tabled a week earlier. Burt remarked on the efforts made by the Ministry of Finance to brief the Opposition on the legislation, highlighting the importance of bipartisan cooperation on international business matters.
Curtis Dickinson, a backbencher from the Progressive Labour Party and a former executive adviser to the insurance industry, spoke about the remarkable growth in the long-term sector over the past five years. He noted the BMA’s efforts to position itself for providing suitable regulation and oversight considering the industry’s rapid innovation and expansion.
Furbert also acknowledged the extensive time dedicated to the consultation and the legislative process, which accounted for the time taken to bring the amendment to fruition. This overhaul marks a significant step in updating Bermuda’s regulatory framework to better suit the dynamic needs of the insurance industry.
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