Mar 2026
Insurance Entities – Two Years to Go!
In September 2025, the Bermuda Monetary Authority (BMA) issued the Operational Resilience and Outsourcing Code (the “OpRes Code”) together with accompanying Guidance Notes. This alert focusses on the entities registered under the Insurance Act 1978 (as amended) to which it applies – namely commercial insurers, IIGB/IILT insurers, insurance managers, insurance brokers, insurance marketplace providers and insurance agents (altogether, the Insurance Entities).
As detailed therein, the OpRes Code is designed to strengthen the Bermuda financial sector’s ability to withstand, adapt to, and recover from operational disruptions. For Insurance Entities, it supplements and amplifies existing requirements under the Insurance Code of Conduct with a particular focus on outsourcing and third-party risk. In particular, the OpRes Code introduces a structured lifecycle whereby the Insurance Entity must (1) identify the important business services, (2) identify and document resources or enablers, (3) set impact tolerances, (4) develop internal and external communication plans, (5) conduct tests, (6) remediate and refine, and (7) conduct an annual self-assessment. The Board of Directors will be ultimately responsible for ensuring the operational resilience of the Insurance Entity with compliance being assessed on a proportionate basis, based on the nature, scale and complexity of the specific Insurance Entity’s business.
While Insurance Entities have until 31 March 2028 to ensure the requirements of the OpRes Code have been met, Boards may wish to prepare now. As a starting point, they should consider conducting a gap analysis to identify where any existing policies may need to be updated, supplemented or amended. During the course of 2027, Insurance Entities can then start building in the structured lifecycle in time for the first year’s self-assessment before the deadline of 31 March 2028.
If you have any questions regarding the OpRes Code, please contact the author or your usual Conyers contact in the Insurance Team to discuss.