Insurance Amendment Act 2023

What this bill does

This bill updates Bermuda's insurance laws to require certain large insurance companies to create "recovery plans" - detailed strategies for getting back on their feet if they face serious financial trouble. It also creates new rules for supervising large international insurance groups that operate across multiple countries.

If passed (voted YES)

• Large insurance companies in Bermuda would need to prepare and maintain backup plans showing how they would recover from financial crises
• The Bermuda Monetary Authority would gain more power to oversee international insurance groups by designating a "head" company responsible for the entire group
• Insurance companies would need to keep copies of their recovery plans at their Bermuda offices and provide information to regulators when requested

If rejected (voted NO)

• Insurance companies would continue operating under current rules without mandatory recovery planning requirements
• The Authority would lack specific powers to designate head companies for international insurance groups
• Bermuda's insurance regulations would remain less aligned with international standards for crisis preparedness

Who it affects

This primarily affects large commercial insurance companies operating in Bermuda, particularly those in Classes 3A, 3B, 4, C, D, and E, as well as international insurance groups with operations in multiple countries that include Bermuda.