The Association of Bermuda Insurers and Reinsurers (ABIR) strongly supports the development of the Bermuda economy and the creation of employment for Bermudians. ABIR supports innovation in the insurance sector and corresponding regulatory changes to support this innovation.

Consistent with the globally recognized regulatory regime of Bermuda’s insurance and reinsurance sector, ABIR proposes the following guiding principles to adhere to when developing a regulatory framework for all emerging financial industry sectors under consideration including those contemplated and intended by the proposed regulation:

1. Proposed financial sector initiatives should maintain and advance the world-class, global reputation of the Bermuda regulatory regime
2. Of paramount importance, regulators should be accountable to policy leaders but independent and free from political influence
3. Regulation must meet or exceed international standards
4. Regulatory costs should be borne by the sector without cross-subsidization from other financial sectors
5. Regulators must be adequately resourced to protect consumers and to effectuate cooperation with appropriate third-party country regulators
6. Regulated entities should have economic substance in Bermuda and meet head-office and physical presence requirements
7. Participants in financial sectors should be subject to a detailed code of conduct
8. All sectors must be subject to and compliant with international Anti-Money Laundering and Terrorism Risk Financing standards
9. Emerging financial sectors and proposed regulation should support and not impair Bermuda’s position as a well-regulated market
10. Over time government should pursue memoranda of understanding with other blue-chip jurisdictions, similar to the suite of Tax Information Exchange Agreement memoranda, to support the appropriate information gathering and transmission subject to appropriate, formal request

ABIR supports innovation and the nimbleness required to accommodate nascent industries that add value to Bermuda, by bringing in talent and job creation and that does not impair Bermuda’s image of a well-regulated jurisdiction.