Insurance Amendment (No.2) Act

What this bill does

This bill requires certain types of investment companies (called "incorporated segregated accounts companies") to register with Bermuda's insurance regulator if they set up separate accounts that conduct insurance business. Currently, these companies may not need to register even when their separate accounts are doing insurance work.

If passed (voted YES)

• Incorporated segregated accounts companies must register with the Bermuda Monetary Authority if any of their separate accounts plan to do insurance business
• The insurance regulator will have more oversight and control over these specialized investment structures when they're used for insurance
• The Authority will consider the relationship between the parent company and its insurance accounts when deciding what type of registration is needed

If rejected (voted NO)

• Some incorporated segregated accounts companies could continue operating insurance business through separate accounts without being registered under insurance laws
• The insurance regulator would have less oversight of these hybrid investment/insurance structures
• Current gaps in insurance regulation of these specialized companies would remain

Who it affects

This primarily affects sophisticated investors and financial services companies that use incorporated segregated accounts structures for insurance-related investments, as well as Bermuda's insurance regulatory framework.