Bill on Bermuda Monetary Authority’s insurance company fees to be debated today

By added on 19/03/2012

Two new pieces of legislation were tabled in the House of Assembly on Friday, at least one is due to be debated later today, reports the Royal Gazette.

The Bermuda Monetary Authority Amendment 2012 seeks to change insurance company fees seeks to not only clarify the Authority’s fees for Bermuda insurance companies which were introduced this year, but it also recognises “the need to be flexible and responsive during this economic climate.”

Premier Paula Cox told The Royal Gazette: “The Bermuda Monetary Authority bases its fee structure on the cost to provide supervisory oversight of regulated entities.

“The licensing structure for Bermuda insurers is a tiered structure with several different classes.”

The amendment seeks to change fees for class 3A insurers based on gross premiums. As of April 1, special insurers with gross premiums not exceeding US$5 million will pay US$19,000.

For insurance companies with gross premiums of US$5 million but not exceeding US$20 million, the fee will be US$22,500.

Companies with US$20 million in premiums that do not exceed US$35 million will pay a fee of US$26,000, and for insurance companies with more than US$35 million in premiums, the new fee will be US$30,000.

Premier Cox said: “This is measure designed to continue to position Bermuda as a competitive and nimble jurisdiction. Some of the fees are being adjusted in a bid to attract greater volume of business not a response to any request.

“The Bermuda Monetary Authority is an independent regulator and their fees are used to pay their operating expenses. The reduction will not compromise their operations.”

Also tabled in the House on Friday was the Merchant Shipping (Fees) Regulations 2012. Both bills are due for debate in the House of Assembly later today.