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  • CI-4.1 CI-4.1 CBB Reporting

    • CI-4.1.1

      Captive insurance firms are required to file an Insurance Firm Return to the CBB providing details of the financial condition of the firm and the business undertaken. They are exempted from quarterly and group financial reportings to the CBB.

      Amended: January 2007

    • CI-4.1.2

      Details of the content of the Insurance Firm Return can be found in Section BR-1.1. The content of the Insurance Firm Return is identical to that required for conventional insurance firms, except that additional information is required for captive insurers (see CI-4.1.3). The Return must be:

      (a) Deposited with the CBB within 3 months of the year end;
      (b) Reviewed by the external auditor based on agreed-upon procedures;
      (c) Be accompanied by a Directors' Certificate; and
      (d) Where applicable, include an actuarial certificate and report.
      Rulebook Reference BR-1.1
      Amended: January 2007
      Amended: October 2007

    • CI-4.1.3

      The insurance business written by captive insurance firms lacks the diversity of risk of conventional firms. Because of this lack of diversity, the CBB seeks additional information from captive firms about their overall risk exposure and the level of reinsurance protection available. This additional information is included for captive insurers as part of the Insurance Firm Return as:

      (a) Risk Gap — the degree to which the firm's potential liabilities (under the policy limits) exceed available assets and the resources available to meet this gap; and
      (b) Reinsurance — the firm's providers, limits and claims.
      Rulebook Reference BR-1.1.6
      Amended: January 2007

    • CI-4.1.4

      Captive insurance firms must disclose to the CBB material information about changes in their situation including (but not limited to):

      (a) Significant breaches in Rules and other requirements;
      (b) Legal, professional, administrative and other proceedings, fraud, errors and other irregularities;
      (c) Financial difficulties, breach of minimum solvency requirements, insolvency, bankruptcy, winding-up;
      (d) Changes in auditors and actuaries;
      (e) Changes in address, legal status etc.; and
      (f) Changes in controllers and close links.
      Rulebook Reference BR-2.2.4
      BR-2.2.6 to BR-2.2.8
      BR-2.2.11
      BR-2.3.29
      BR-2.3.3 and BR-2.3.4
      BR-2.3.7
      Amended: January 2007
      Amended: October 2007

    • CI-4.1.5

      It is envisaged that, for captive firms, the information provided to the CBB through the Insurance Firm Return and periodic notification of changes of controller etc. will be adequate for their supervisory purposes, other than in exceptional circumstances. Captive insurance firms are reminded, however, that they are required to maintain an open relationship with the supervisor and that the CBB does have powers to visit the premises of firms or insurance managers (other than in exceptional circumstances, with reasonable notice), request information and commission a report on the firm's business.

      Rulebook Reference BR-3.1
      BR-3.2
      Amended: January 2007