USVI Public Records

Document text

Office of the Lieutenant Governor Division of Banking, Insurance and Financial Regulation #5049 Kongens Gade, Charlotte Amalie, St. Thomas, USVI 00802-6487 @ (340) 774-7166 @ Fax (340) 774-9458 1131 King Street, Suite 101, Christiansted, St. Croix, USVI 00820 @ (340) 773-6459 @ Fax (340) 719-3801 ltg.pov.vi BULLETIN 2019-14 TO: All Insurers licensed and authorized to conduct insurance business in the U.S. Virgin Islands RE: Notice of Act No. 8182, which adds a new chapter 20a entitled “The Risk Management and Own Risk and Solvency Assessment Act” This Bulletin is being issued to notify all insurers licensed and authorized to conduct insurance business in the U.S. Virgin Islands of the passage of Act No. 8182 signed July 5, 2019, now codified in Title 22, Chapter 20a of the Virgin Islands Code (‘The Risk Management and Own Risk and Solvency Assessment Act’). The purpose of the Virgin Islands Risk Management and Own Risk and Solvency Assessment Act is to establish the requirement that insurance companies doing business in the Territory maintain a risk management framework and complete an Own Risk and Solvency Assessment (“ORSA”). The Act further provides guidance and instructions for companies when filing an ORSA Summary Report. The ORSA is required by the Territory’s Commissioner of Insurance as one of the conditions for licensure, as cited in the Conditional Letter for License Renewal. The ORSA, which is a component of an insurer’s enterprise risk management (ERM) framework, is “a confidential internal assessment, appropriate to the nature, scale and complexity of an insurer or insurance group, conducted by that insurer or insurance group of the material and relevant risks associated with the insurer or insurance group’s current business plan, and the sufficiency of capital resources to support those risks.” An insurer that is subject to ORSA requirements will be expected to: (1) Regularly, no less than annually, conduct an ORSA to assess the adequacy of its risk management framework, and current and estimated projected future solvency position; (2) Conduct an ORSA consistent with a process comparable to the ORSA Guidance Manual; (3) Internally document the process and results of the assessment; and financial regulatory agencies, members of supervisory colleges as defined in the Virgin Islands Insurance Holding Company System Regulatory Act, the National Association of Insurance Commissioners (“NAIC”) and third-party consultants. The Act also provides a penalty, in the amount of $500 for each day delay with a maximum possible penalty amount of $5,000, for failing to timely file the ORSA Summary Report. The ORSA Summary Report must be filed annually on or before March 15" of each year beginning January 1, 2020. Questions regarding this Bulletin may be directed to the Division of Banking, Insurance and Financial Regulation by calling Attorney Glendina Matthew, Assistant Director/Legal Counsel at (340) 773-6459. Dated this Z 0 _day of November 2019 ao ae thomas, U.S in am Aejeng Ht ) @ a genza A. Roach, pel ieutenant Governor/ Commissioner of Insurance