^aBermuda Monetary Authority, BMA House, 43 Victoria Street, Hamilton HM12, Bermuda. E-mail: melderfield@bma.com

Abstract

The international regulatory environment for the insurance sector is experiencing an intense period of change. The issue of maintaining compliance with international standards has become an increasing priority for insurance regulators worldwide. In recent years the movement toward the global standardisation of insurance regulation has gained momentum, as the industry itself has become more globalised. The significant market turmoil over the past year that has had worldwide impact on the financial sector has added another complex dimension to this environment. This paper argues that there are three key regulatory trends that will impact the insurance industry in the short- to medium-term, based on two underlying key drivers of regulatory change over this time horizon. These drivers can be put simply and should be no surprise. They are: first, Solvency II and second, sub prime.