We were engaged by a large insurance company seeking to establish a re-insurance business in Bermuda so they could free up circa £100m in the UK to expand into North America. We were asked to help them to develop a governance structure (including policies) and risk framework that would meet the requirements of the BMA (Bermuda Monetary Authority) Insurance Code of Conduct.
Within a six-month timeframe, we successfully accomplished the following:
- Design and built a tailored Risk Framework to meet the specific demands of the BMA Insurance Code of Conduct focusing on ESG, Conduct and Climate Change risk
- Established Risk Committee Terms of Reference and reporting structure
- Formulated Risk Appetites
- Drafted a suite of policies for Board approval
- Created draft risk registers for each area of the new business
- Developed a comprehensive matrix of controls necessary for “Go live”, “Day 0”, “Day 1” and within 18 months of Go-live
- Ensure data privacy controls implemented to meet requirements of GDPR and PIPA (Personal Information Protection Act)
The project encountered two significant challenges, firstly, it was crucial to make all decisions locally in Bermuda and retain evidence for tax purposes. Secondly, while the c-suite had been recruited, there were no staff members nor had any partners been finalised, this necessitated us acting as 2nd Line and 1st Line during these early stages.
Working closely with the Chief Operating Officer and Interim Chief Risk Officer we successfully designed and implemented a comprehensive Risk Management Framework. We also prepared drafts of the 11 policies need required for the BMA license application. Additionally, we documented 1,500 controls that needed to be implemented prior to “Go live”, “Day 0”, “Day 1” and within 18 months of operations.
Contact us if you are looking to set up a new business in another jurisdiction outside the UK and need a Governance and Risk Framework for the new entity.
If you require a Governance and Risk Framework for a new business in a jurisdiction outside the UK and aim to meet the standards set by international regulators, we can assist you in building a comprehensive corporate governance framework and risk framework. Contact us to explore how we can support your needs and ensure compliance with regulatory requirements in your desired jurisdiction.
