Industry Circular No. 5 of 2021 - Legislation Update: The BVI Financial Services Commission issues the Regulatory (Insurance Code of Conduct) Code, 2021 & the Regulatory (Amendment) Code, 2021

Legislation Update: The BVI Financial Services Commission issues the Regulatory (Insurance Code of Conduct) Code, 2021 & the Regulatory (Amendment) Code, 2021

The Financial Services Commission announces the issuance of the Regulatory (Amendment) Code, 2021 (the 'Amendment Code') and Regulatory (Insurance Code of Conduct) Code, 2021 (the 'Insurance Conduct Code'), which will come into force on 06th July 2021. Relevant details provided below. 

The Amendment Code
The Amendment Code imposes specific requirements on claims handling records that licensed insurers and insurance intermediaries must maintain. In addition, the Amendment Code also substitutes section 59 (2)(a) of the Regulatory Code, 2009 to outline the auditing standards by which 'licensees' financial statements must be audited.

The Insurance Conduct Code
The Insurance Conduct Code introduces a framework to govern the market conduct of domestic insurers, insurance intermediaries and loss adjusters. The principal objective of the framework is to ensure that insurance business in the jurisdiction is conducted with integrity and transparency while treating customers fairly. The Insurance Conduct Code lays out requirements for market conduct, including General Conduct Principles and specific rules for Insurers, Insurance Intermediaries and Loss Adjusters accordingly.   

Relevant licensees should implement appropriate measures to ensure compliance with the Amendment Code requirements and the Insurance Code of Conduct Code, which can be found on the Commission's website.