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08 August 2019
Bermuda law prohibits any person, in or from Bermuda, from carrying on business as an insurance broker or agent unless they are registered to do so by the Bermuda Monetary Authority. Insurance brokers and agents play a vital role in the insurance market. A 'broker' is a person who arranges or places insurance business with insurers on behalf of prospective or existing policyholders, whereas an 'agent' is a person who, with an insurer's authority, acts on its behalf in relation to:
There are currently 95 brokers and 59 agents registered in Bermuda.
In February 2019 the authority published the Insurance Brokers and Insurance Agents Code of Conduct. The code was developed in consideration of the international standards set by the International Association of Insurance Supervisors and is intended to assist the authority in providing appropriate, effective and efficient supervision and regulation of Bermuda-registered brokers and agents.
The code establishes duties, requirements and standards that registered brokers and agents must comply with – for example:
In assessing whether a broker or agent is conducting its business in a sound and prudent manner, the authority will take a proportionate approach relative to the business' collective nature, scale and complexity.
The code came into effect on publication, with all existing brokers and agents having until 1 January 2020 to ensure compliance.
For further information on this topic please contact Gavin Woods at Carey Olsen Bermuda by telephone (+1 441 542 4500) or email (firstname.lastname@example.org). The Carey Olsen Bermuda website can be accessed at www.careyolsen.com.
This article was first published by The European in July 2019.
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