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How Finalyse can help
BMA regulatory requirements
The Bermuda Monetary Authority (BMA) framework is a supervisory regime for commercial insurers and insurance groups which has full equivalence with the EU’s Solvency II regime. It has enhanced statutory and prudential reporting requirements for Bermudan entities, promoting transparency. Companies must calculate their capital according to their individual risk profile and produce a forward-looking Solvency Self-Assessment (GSSA/CISSA). This brings increased demand for modelling expertise and sound risk management.
BMA published a Guidance Note outlining their expectations for climate risk management in August 2022. (Re)insurers are expected to address climate change risk in their governance, risk management framework and GSSA/CISSA. Progress on the implementation of the guidance will be monitored during 2023, with full adaptation by 2025. See further information on the new requirements for climate change risk here.
Finalyse offers a comprehensive set of managed services and tailored solutions. Finalyse can assist you in complying with these new regulations, including meeting the recently published climate risk management requirements for 2023.
How does Finalyse address your challenges?
HoAF Support:
Calculation of technical provisions for EBS, assessing appropriateness of the methods, models and assumptions, sufficiency & quality of data. And providing an opinion on the CISSA
Capital Modelling support:
Production of the BMA Capital Requirement supporting analysis and maintaining capital model is maintained in line with the internal governance framework
CISSA/GSSA support:
Capital planning and optimisation, GSSA projections and stresses, including climate risk scenarios (see also here). Communicating complex concepts and enabling management decision-making through sound analytical rationale
Strategic and operational:
Providing actuarial support on strategic initiatives, streamlining the actuarial process and enhancing to the Actuarial Function including policies, processes and tools
SAA support:
Specifying asset classes, defining objectives and constraints, forming capital market expectations, establishing asset class bandwidths, validating the optimal allocation and optimizing the asset mix
Peer reviews:
Review of assumptions, methodologies, material uncertainties and potential deteriorations, expert judgement, appropriateness of models and reasonableness of the AA’s conclusions
How does it work in practice?
The Bermuda Monetary Authority (“BMA”) is responsible for the licensing, supervision and regulation of financial institutions including those conducting deposit-taking, insurance, investment and trust business in Bermuda.
The BMA has a Solvency II equivalence and has a similar 3 pillar approach.
Principles of Economic Balance Sheet (EBS):
Principles of Bermuda Solvency Capital Requirements (BSCR)
Our subject matter experts
Francis is a Principal Consultant in charge of our Insurance practice in Dublin. He has 15 years of experience within the life and non-life (re)insurance industry as an actuary. His expertise covers the areas of financial reporting, prudential regulation and actuarial modelling. Francis has worked in both industry and consulting with extensive exposure to domestic and international clients and a keen eye on new regulatory developments.
Bence is a senior actuary with 20+ years of experience in life actuarial science and reporting in Solvency II, IFRS, BMA EBS and ICS regulations. His focus has been on actuarial and risk modelling - including capital projections, market risk management and internal model validation – and ERM framework design. Bence delivers business transformation, reinsurance, new authorisation and M&A projects and is keen on applying machine learning and data analytics for actuarial use cases.
Key Features
- Finalyse offers extensive experience and expertise on both the asset and liability sides of the balance sheet, which provides the necessary scope of knowledge and skills to help determine the solution that is optimal for your business.
- Leverage on our experience in areas beyond financial reporting, such as actuarial models, IT systems including data management and storage capacities, risk management including ALM and hedging, product design, business strategies and remuneration.
- You can choose from a comprehensive set of managed services and tailored solutions to support you with various elements of BMA compliance, such as implementation of the key functions, performing and reviewing technical calculations, actuarial model development, risk management (including ALM and hedging), CISSA production and reporting.
- You can also fully outsource the various key functions required by the BMA to Finalyse by appointing one of our senior experts with previous experience to fulfil these functions.
Our subject matter experts
Francis is a Principal Consultant in charge of our Insurance practice in Dublin. He has 15 years of experience within the life and non-life (re)insurance industry as an actuary. His expertise covers the areas of financial reporting, prudential regulation and actuarial modelling. Francis has worked in both industry and consulting with extensive exposure to domestic and international clients and a keen eye on new regulatory developments.
Bence is a senior actuary with 20+ years of experience in life actuarial science and reporting in Solvency II, IFRS, BMA EBS and ICS regulations. His focus has been on actuarial and risk modelling - including capital projections, market risk management and internal model validation – and ERM framework design. Bence delivers business transformation, reinsurance, new authorisation and M&A projects and is keen on applying machine learning and data analytics for actuarial use cases.
Artjom is an expert in Insurance with expertise in actuarial modelling and reporting as well as in insurance regulation. He has acquired experience in developing new financial tools and contributed to the deployment of technological solutions thanks to his technical and regulatory expertise.