BMA says insurer boards remain accountable for private credit even when management is outsourced
Outsourcing investment management does not outsource accountability, and this principle reaches well beyond one jurisdiction. Insurers relying on affiliated or external asset managers should check whether board reporting gives directors real visibility into valuation, concentration and liquidity in private-credit books. Firms that cannot show that understanding should expect closer supervisory questioning.
What Happened
Gerald Gakundi, deputy managing director and head of insurance and investment funds at the Bermuda Monetary Authority, spoke at the Bermuda International Life and Annuity Conference. He said insurers that outsource management of their private-credit holdings to asset managers remain responsible for understanding those holdings. He also said boards are accountable for the risks of assets on the company balance sheet.
Why It Matters
Outsourcing investment management does not outsource accountability, and this principle reaches well beyond one jurisdiction. Insurers relying on affiliated or external asset managers should check whether board reporting gives directors real visibility into valuation, concentration and liquidity in private-credit books. Firms that cannot show that understanding should expect closer supervisory questioning.
Sources
- The Royal Gazette (opens in a new tab): Insurers told to know their private credit (2026-10-05)
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This story is part of the Laurenceo Intelligence briefing for 7 October 2026, a daily sourced briefing on AI, technology and enterprise risk published in Bermuda by Laurenceo, founded by Jorai Laurenceo. It is produced by an automated research pipeline and checked before publication; how this is made. General information only, not legal, regulatory or financial advice.