The Bermuda Monetary Authority (BMA) instituted an expedited process to license and register Special Purpose Insurers (SPIs) permitted to carry on restricted special purpose business and which issue catastrophe or mortgage bonds. The procedure offers important enhancements and places Bermuda as the fastest jurisdiction in the world for registration of SPIs. The process took effect on 13 August 2021.
The expedited process offers several advantages over the traditional process. These are:
- a turnaround time of just three business days;
- process may be initiated on any business day by submitting an application prior to 5 pm (Bermuda time);
- required information is provided through a new SPI checklist with no need to submit a business plan; and
- one-step application process to formally register as an SPI.
Details of the process and required documentation are outlined within the application checklist, which is available at www.bma.bm/document-centre/policy-and-guidance-insurance.
The enhanced process for bond-issuing restricted SPIs demonstrates how the BMA is responding to the needs of the insurance-linked securities (ILS) market by creating a more seamless experience for bond sponsors looking to locate their structures in Bermuda. We anticipate the process enhancements being extended to other ILS vehicles such as sidecars in the future.
Further, these changes show the BMA’s responsiveness to a competitive marketplace by proactively improving timelines for sponsors in Bermuda.
If you have any questions relating to the licensing and registration process for SPIs please contact one of the individuals listed below or your usual Conyers contact.