Consultation papers - During Q1 2025, the BMA released several key consultation papers (CPs) aimed at enhancing regulatory frameworks:

• Public disclosure of assets and liabilities template: Aimed at standardizing asset and liability reporting across regulated entities.
• Class ILT regulatory framework enhancements: Proposed regulatory updates for Class IIGB and IILT insurers, formalising annual return filing requirements for IILT insurers and other housekeeping improvements. Feedback was invited by 28 February 2025.
• Operational resilience and outsourcing standards: This CP proposed new standards to ensure that financial institutions are prepared to manage and recover from disruptions, focusing on continuity of critical services. Stakeholders were asked to comment by 14 March 2025.
• Embedded Supervision for Decentralised Finance (DeFi): A visionary project aiming to embed regulatory oversight within DeFi platforms through automated compliance and reporting mechanisms. The consultation window remained open until 30 April 2025.

Policy guidance - The BMA reinforced its regulatory framework through the following guidance notes in Q1 2025:

• AML-ATF advisory: Highlighted requirements for enhanced due diligence in dealing with higher-risk jurisdictions, alongside updated lists of jurisdictions that are under increased Financial Action Task Force (FATF) monitoring.
• Basel III updates for banks: Expanded prudential reporting requirements, reflecting revised Basel III regulatory standards through newly issued returns.

Updated forms and reporting guidelines - New and updated templates were introduced for 2025, covering various insurance classes and financial reporting formats. Notable examples include updated BSCR instructions for classes E, D, 3B, and others, as well as year-end filing requirements for specific insurers.

Insurance Account Amendment Rules 2025 - These amendments simplify financial statement submissions for insurers preparing accounts under International Financial Reporting Standards (IFRS). Effective from 26 February 2025, those insurers preparing condensed general purpose financial statements may submit such statements when preparing their financial statements in accordance with IFRS.

Digital Asset Business Rules 2025 - Effective 12 February 2025, these rules establish stricter custody requirements for digital asset businesses holding client assets, improving safeguards and transparency in this emerging sector.

Reporting and surveys - The BMA released two major reports this quarter:

• Insights on asset intensive insurance in Bermuda (21 March 2025): This report provided a deep analysis of financial stability, capital gaps, and regulatory oversight in the Asset Intensive Insurance market.
• BMA captive report 2023 (24 March 2025): Highlights included macroprudential trends, regulatory developments, and key statistics for Bermuda’s captive insurance market.

International engagements - The BMA maintained a strong presence on the global stage, participating in a variety of high-profile events, bilateral meetings, and working groups. Key highlights include:

• Contributions to the International Association of Insurance Supervisors (IAIS), including discussions on climate risk disclosures and life insurance sector shifts.
• Participation in events such as the Bermuda Risk Summit and the World Captive Forum, alongside collaboration with entities like the Federal Reserve Board and Japan’s Financial Services Agency.
• Engagements with the G20 Sustainable Finance Working Group and numerous international supervisory bodies to address topics ranging from FinTech to natural catastrophe insurance gaps.

The BMA's Q1 2025 update highlights its commitment to strengthening regulatory frameworks, fostering global collaboration, and addressing emerging challenges in digital assets, DeFi, and operational resilience.

For additional details BMA’s regulatory update can be found here.