GDPR extends to data controllers and data processors located outside the EU, where data is processed in connection with the offer of goods and services to individuals in the EU or who monitor their behaviour. Of particular note, insurance and reinsur­ance companies located outside of the EU (and, therefore, operating outside of scope of the existing EU data protection regime) may find themselves to be subject to GDPR if they insure/reinsure EU customers.

While the ever-increasing scope of inter­national regulation may be lamented in some quarters, it is welcomed by those who wish to live and work in a modern, sophis­ticated and protected environment. But, in the case of laws that have an extraterritorial impact, it is sometimes difficult for compa­nies to gauge whether or not their activities fall within the accepted parameters of such laws. The good news for Bermuda entities is that the Personal Information Protection Act 2016 (PIPA) is due to come into full effect by December 2018.

PIPA will apply to every organisation that uses personal information by automated means and personal information used other than by automated means that forms part of a structured filing system. It will also regulate the use of personal information by organisations in a manner which recognises the need to protect the rights of individuals In relation to their personal information and the need for organisations to use personal information for legitimate purposes.

PIPA was prepared with the specific aim of achieving adequacy in the EU, thereby enabling the free flow of personal data between EU member states and Bermuda. As a result, there are similar themes underpinning GDPR and PIPA, such as:

organisations are to provide a significant amount of information to individuals at the time of collection of their data

data subjects have the right to obtain confirmation that their data is being pro­cessed and to access that personal data to respond to a subject access request (one month with GDPR and 45 days with PIPA)

personal data should not be kept for longer than is necessary to fulfil the purpose for which it was collected (pre­scribed data retention periods are not set out in either law but an analysis will need to be undertaken to determine how long different types of data should be retained)

if data subjects wish to have their data removed, and the data is no longer required for the reasons for which it was collected, then it must be erased

international transfer of data is permit­ted, provided certain criteria have been satisfied.

As a result, by complying with one regime, Bermuda companies will ensure they are well placed to comply with the other.

Compliance with these new regimes will become an important part of the day-to-day operations of most companies, and Ber­muda companies would do well to ensure they satisfy their obligations under PIPA and GDPR because the consequences for breach are considerable and include:

GDPR: a maximum fine of €20m or 4% of annual worldwide turnover

PIPA: corporations may be fined up to BM$250,000, while individuals may be fined up to BM$25,000 and/or impris­oned for a term of two years.

GDPR will extend to the operations of Bermuda companies in the EU, and PIPA will apply to all Bermuda companies. Bermuda insurers, in particular, will be affected by these regulatory regimes due to the nature of their business. With GDPR now in effect, and PIPA following close behind, the importance of compliance can­not be underestimated.

Share
Twitter LinkedIn Email Save as PDF
More Publications
27 Jun 2022

Insurtech ILS and the New Normal

As Bermuda and the global markets with which the Island transacts move towards the so-called  ‘ne...

Contributors: Josephine Noddings
23 Jun 2022

Digital Assets in a Crypto Winter

In 2013, IT engineer James Howells was cleaning out his house. He had two identical hard drives: one...

Contributors: James Batten
22 Jun 2022

Bloomberg Tax Country Guide: Bermuda

Bloomberg Tax Country Guides provide overviews of the tax regimes of more than 200 jurisdictions. Th...

Contributors: Ashley Bento
9 Jun 2022

Bermuda’s long-term re/insurance landscape

Bermuda’s long-term re/insurance market has grown considerably in recent years. The island now has...

2 Jun 2022

Provisional Liquidation In Bermuda

Provisional liquidation in Bermuda is a distinctive, flexible regime that operates to support compan...

Contributors: James Batten
23 May 2022

The good life: Bermuda’s new economic pillar

The life sector has moved swiftly from being a new ‘nice-to-have’ in the Bermuda marketplace, to...

5 May 2022

Restructuring of (Re) Insurers during Covid-19

Restructuring involves changing the financial, operational, legal or other structures of a business ...

28 Apr 2022

Assignment, novation or sub-participation of loans             

Transfers of loan portfolios between lending institutions have always been commonplace in the financ...

21 Apr 2022

Defining digital assets in insolvency proceedings

It has been more than a decade since the creation of the first cryptocurrency, bitcoin, yet digital ...

Contributors: James Batten
7 Apr 2022

Funds: filing requirements and Integra

Investment funds registered, authorised or designated under the Investment Funds Act 2006 have ongoi...