BMA Guidance Notes on Special Purpose Insurers

Charles G.R. Collis, Michael Frith • Posted 24/10/2009 • Under Articles

SUMMARY OF THE BMA'S GUIDANCE NOTE ON SPECIAL PURPOSE INSURERS

Last year, in line with its ongoing efforts to enhance the regulation of insurers in Bermuda, the Bermuda Monetary Authority ("BMA") introduced several amendments to the Insurance Act 1978 (the "Act"). Among other matters, the Insurance Amendment Act 2008 (which came into force at the beginning of this year) introduced the concept of "Special Purpose Insurers" in Bermuda. These special purpose insurers ("SPIs") will be licensed to write an entirely new category of insurance business referred to as "special purpose business".