New Police Clearance Requirement For Key Persons Of Bermuda Direct Long-Term Insurers And Insurance Intermediaries

The Bermuda Monetary Authority (BMA) has introduced a new requirement for Police Clearance Certificates in connection with the fit and proper assessment of certain Key Persons of regulated financial institutions. The new requirement will strengthen the BMA’s vetting process and will align the position in Bermuda with international standards and comparable jurisdictions by requiring additional information regarding an individual’s criminal history and background as part of the regulatory approval process.

For the insurance sector, the new requirement will affect the following registered persons under the Insurance Act 1978 (the “Insurance Act“):

• insurers carrying on direct long-term business (but not reinsurers); 

• insurance managers; and 

• insurance brokers and marketplace providers in relation to long-term business, 

(each an “in-scope insurer”).

Who is a Key Person?

In the context of an in-scope insurer, a Key Person includes an individual who is a “controller” or “officer” of the in-scope insurer.

A “controller” includes (i) the managing director of the registered insurer or its parent company; (ii) the chief executive of the registered insurer or of its parent company; (iii) a 10%, 20%, 33% or 50% shareholder controller; and (iv) any person in accordance with whose directions or instructions the directors of the registered insurer or of its parent company are accustomed to act.

The definition of shareholder controller is set out in the Insurance Act but generally refers to (i) a person who holds 10% or more of the shares carrying rights to vote at a shareholders’ meeting of the registered insurer or its parent company, or (ii) a person who is entitled to exercise 10% or more of the voting power at any shareholders’ meeting of such registered insurer or its parent company, or (iii) a person who is able to exercise significant influence over the management of the registered insurer or its parent company by virtue of its shareholding or its entitlement to exercise, or control the exercise of, the voting power at any shareholders’ meeting.

The term “officer” includes a director, chief executive or senior executive performing duties relating to underwriting, actuarial, risk management, compliance, internal audit, finance or investment matters (and in the case of innovative insurers, information technology or information security).

The relevant definitions under the Insurance Act should therefore be considered when determining whether an individual is a Key Person for purposes of the new requirement.

What is the New Requirement?

From 1 October 2026, each relevant Key Person will be required to provide a Police Clearance Certificate together with their personal declaration form as part of the BMA’s fit and proper assessment.

The Police Clearance Certificate must:

• be no more than 12 months old as at the date it is submitted to the BMA; 

• be obtained from each country in which the individual was ordinarily resident for more than six (6) months at any time during the preceding three (3) years; and 

• where a certificate cannot be obtained from a particular jurisdiction, be replaced by suitable substitute documentation, which the BMA may consider on a case-by-case basis. 

When Will the Requirement Apply?

The new Police Clearance Certificate requirement will take effect on 1 October 2026. From that date, the requirement will apply to:

(i) Proposed new registrants – applications for registration submitted on or after 1 October 2026, where the relevant Key Person is required to undergo the BMA’s fit and proper assessment and submit a personal declaration; and

(ii) Existing registrants – applications or Key Person change notifications submitted on or after 1 October 2026 in respect of changes to relevant Key Persons that require BMA vetting.

Applications or notifications received in full by the BMA before 1 October 2026 will not be affected. The new requirement will therefore not apply retrospectively to complete submissions already received by the BMA.

Practical Considerations for In-scope Insurers

In-scope insurers should consider the new requirement when planning new registrations and upcoming appointments or changes involving Key Persons. In particular, they should:

• identify upcoming Key Person appointments or changes that will require BMA vetting; 

• review the proposed Key Person’s residence history for the preceding three years to identify the jurisdictions from which Police Clearance Certificates will be required; 

• allow sufficient time to obtain Police Clearance Certificates, particularly where certificates are required from multiple jurisdictions; 

• ensure that each Police Clearance Certificate is no more than 12 months old when submitted to the BMA; and 

• where a Police Clearance Certificate cannot be obtained, consider what substitute documentation may be available for submission to the BMA. 

The new requirement should be factored into the timing of regulatory applications and Key Person change notifications, particularly where the proposed Key Person has lived or worked in multiple jurisdictions.