Custodian Life is registered under the Insurance Act 1978 and the Segregated Accounts Companies Act 2000. The Company is under supervision of the Insurance Department within the Bermuda Monetary Authority. The Insurance Department is also responsible for the regulation and inspection of Bermuda’s insurance companies and for licensing of all insurance companies. The Insurance Act 1978 provides the Authority with substantive licensing and intervention powers.

In developing its regime, the Authority seeks foremost to act in the best interests of Policyholders and prospective Policyholders while facilitating the continued development of a viable, healthy, competitive and innovative insurance industry. This approach has been applied to reinsurance business and captive business in Bermuda for over 20 years. During that period, the Authority has also been assisted in implementing supervision that is both appropriate and effective by the existence of a mature financial market infrastructure, and it has been able to tailor its supervisory approach accordingly.

The Authority has a risk-based supervisory process, which categorizes regulated entities according to a number of parameters within each class of insurance. The Authority’s supervisory regime includes scrutiny of audited statutory financial returns, and, as appropriate, meetings with senior management and on-site visits and inspections. Companies are required to provide to the Authority annual statements audited by an approved auditor. The auditor is required to express an opinion on the reasonableness of the statements in an insurer’s Solvency Certificate and on whether the statutory ratios comply with the requirements of the Act and Regulations. Actuarial certification of loss reserves is required annually for Class 3 and Class 4 companies, and triennially for Class 2 companies. The Authority’s general approach involves the application of more rigorous scrutiny and more onerous requirements where material amounts of business are transacted with unrelated parties.

In addition, there can be a greater reliance on transparency and ongoing disclosure where counterparties are sufficiently expert and sophisticated to be reasonably expected to understand and judge the underlying risks, and to determine their degree of tolerance for them. As a result, the Authority is able to concentrate its resources in those areas that most need attention, placing particular weight on the early identification of areas of non-compliance and possible emerging problems. In addition to the extensive on-site work conducted by approved auditors and actuaries, Authority staffs carry out detailed on-site reviews, coupled with comprehensive off-site analysis. The Authority is a charter member of the International Association of Insurance Supervisors (“IAIS”) and continues to be closely involved with that body in the development of guidelines for global insurance regulation.

The Bermuda Monetary Authority (BMA) is the integrated regulator of the financial services sector in Bermuda. Established under the Bermuda Monetary Authority Act 1969, the BMA supervises, regulates and inspects financial institutions operating in or from within the jurisdiction. It also issues Bermuda’s national currency; manages exchange control transactions; assists other authorities in Bermuda with the detection and prevention of financial crime; and advises the Government and public bodies on banking and other financial and monetary matters. The Authority develops risk-based financial regulations that it applies to the supervision of Bermuda’s banks, trust companies, investment businesses and insurance companies. It also regulates the Bermuda Stock Exchange. Details of the Authority’s regulatory approach and of the standards and requirements of its different regulatory regimes can be found in the relevant sections of this website. In addition, as required by the relevant financial services legislation, the Authority provides specific reports on its activities to the Minister of Finance on an annual basis. In carrying out its role, the Authority both follows and helps to set international best practice. The BMA’s goal is to support overall stability in the Bermuda market and make sure business is conducted prudently. Ultimately their responsibilities aim to protect Bermuda’s reputation, and the local depositors, policyholders and investors who use financial services in Bermuda. The BMA’s mission is to protect and enhance Bermuda’s reputation and position as a leading international financial centre, utilising a team of highly skilled professionals acting in the public interest to promote financial stability, safeguard our currency and provide effective and efficient supervision and regulation.

The Insurance Department within the BMA is responsible for the regulation and inspection of Bermuda’s insurance companies and for licensing of all insurance companies. The Insurance Act 1978 provides the Authority with substantive licensing and intervention powers. In developing its regime, the Authority seeks foremost to act in the best interests of policyholders and prospective policyholders while facilitating the continued development of a viable, healthy, competitive and innovative insurance industry. This approach has been applied to reinsurance business and captive business in Bermuda for over 20 years. During that period, the Authority has also been assisted in implementing supervision that is both appropriate and effective by the existence of a mature financial market infrastructure, and it has been able to tailor its supervisory approach accordingly. The Authority has a risk-based supervisory process, which categorizes regulated entities according to a number of parameters within each class of insurance. The Authority’s supervisory regime includes scrutiny of audited statutory financial returns, and, as appropriate, meetings with senior management and on-site visits and inspections.

Companies are required to provide to the Authority annual statements audited by an approved auditor. The auditor is required to express an opinion on the reasonableness of the statements in an insurer’s Solvency Certificate and on whether the statutory ratios comply with the requirements of the Act and Regulations. Actuarial certification of loss reserves is required annually for Class 3 and Class 4 companies, and triennially for Class 2 companies. The Authority’s general approach involves the application of more rigorous scrutiny and more onerous requirements where material amounts of business are transacted with unrelated parties. In addition, there can be a greater reliance on transparency and on-going disclosure where counterparties are sufficiently expert and sophisticated to be reasonably expected to understand and judge the underlying risks, and to determine their degree of tolerance for them. As a result, the Authority is able to concentrate its resources in those areas that most need attention, placing particular weight on the early identification of areas of non-compliance and possible emerging problems. In addition to the extensive on-site work conducted by approved auditors and actuaries, Authority staffs carry out detailed on-site reviews, coupled with comprehensive off-site analysis. The Authority is a charter member of the International Association of Insurance Supervisors (“IAIS”) and continues to be closely involved with that body in the development of guidelines for global insurance regulation.