The Bermuda Monetary Authority (BMA) has released updated licensing guidance, formalizing pre-application consultations that were previously informal – a move aimed at streamlining approvals as the island jurisdiction faces mounting competition from Asia-Pacific hubs.
The authority replaced its July 2020 bulletin with expanded guidance covering all re/insurer classes and new application forms that must be used for future submissions to the Insurance Assessment and Licensing Committee.
While informal pre-IALC engagement is currently standard practice, the regulator said formalizing the process provides clarity and consistency, enabling early identification of issues requiring clarification. Feedback is normally provided within one to two weeks.
Bermuda recorded 58 new insurer registrations in 2025, down from 63 in 2024 but within the 60-to-75 band that has characterized annual formations since 2016, industry data shows. The December review processed 12 applications, with eight approved, three deferred and one deemed insufficient.
The IALC, established by the BMA's board of directors, meets on Fridays and requires applications by 5pm on the preceding Monday. Applicants typically receive notification the same day, with decisions classified as "approved," "approved subject to" or "declined." Approval letters are valid for six months.
The updated bulletin emphasizes proportionality in applying the BMA's risk-based framework – a principle that has drawn questions from applicants.
In practice, this means regulatory requirements scale with an insurer's size and complexity. Actuarial certification of insurance liabilities is required annually for Class 3, 3A, 3B and Class 4 insurers, but only tri-annually for smaller Class 2 insurers, the authority's supervision guidelines show.
Stephen Weinstein, head of the BMA's supervision department, has previously stated that oversight reflects "the nature, scale and complexity of registrants in accordance with the proportionality principle."
For captive insurers, this translates to less onerous governance and risk management requirements compared with large commercial reinsurers.
The streamlined process comes as Bermuda faces growing competition. Markets like Hong Kong and Singapore continue gaining momentum as they position themselves as key reinsurance hubs, industry observers note.
Bermuda remains one of only two jurisdictions worldwide recognized as regulatorily equivalent with both the European Union and the United States – a status that underpins its appeal. Member companies of the Association of Bermuda Insurers and Reinsurers (ABIR) reported 2024 gross written premium of more than US$188 billion and equity of US$178 billion.
The regulator said it will apply proportionality when implementing its risk-based framework, considering the nature, scale and complexity of the business and materiality of associated risks.
