By Bernews8
Copyright bernews
BMA Releases 2025 Global Stress Test Results
The Bermuda Monetary Authority [BMA] has released the results of its 2025 Global Financial Crisis stress test.
A spokesperson said, “As part of this ongoing commitment to financial stability, the Bermuda Monetary Authority [Authority or BMA] conducted a Global Financial Crisis [GFC] stress test for long-term commercial insurers in Bermuda. This is part of the BMA’s continued efforts to monitor worldwide economic developments and assess the resilience of Bermuda’s insurance market through regular stress testing exercises.
“The 2025 GFC stress test results provide important insights into the resilience of Bermuda’s long-term insurance sector under severe economic conditions. The aggregate results illustrate that the sector maintains adequate capital buffers overall, with the majority of entities demonstrating that they could withstand the prescribed stresses without relying on management actions. This confirms that the current level of exposures and capitalisation does not present a threat to the financial stability of the Bermuda long-term market or the global life insurance market.
“The report also identifies several areas that warrant continued attention and monitoring, including the importance of robust recovery planning and capital management frameworks.
“The detailed asset and liability data obtained through this exercise will enable the BMA to refine its risk-based supervisory approach and focus resources on entities and risk areas that demonstrate greater vulnerability. Additionally, the treaty-level recapture analysis provides unprecedented insight into potential cross-border transmission channels that will inform future supervisory cooperation with international regulatory counterparts. The BMA will continue to engage with industry participants to address the findings of this exercise while maintaining a regulatory framework that appropriately balances financial stability with the sector’s continued development.”
The full 2025 Global Financial Crisis stress test results follow below [PDF here]:
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Category: All, Business
