Technology: the new zone for ILS

Bermuda partner Peter Dunlop discusses, in the summer edition of Bermuda: Re + ILS, new opportunities and challenges on the horizon as the ILS sector looks to help manage everything from cyber risk to cryptocurrency and intangible assets.

Insurance Amendment Act 2008 and the introduction of the light-touch regulated Special Purpose Insurer ("SPI"), Bermuda embraced third party capital convergence and launched itself in to pole position as the world’s leading Insurance-Linked Securities ("ILS") marketplace.

More recently, to meet the rising tide of Insurtech initiatives, Bermuda's regulator, the Bermuda Monetary Authority ("BMA"), launched in 2018 a temporary license, "Innovative Insurer" class for both general business and long-term business and created the Insurtech Regulatory Sandbox and Innovation Hub. Presently, we in Bermuda await the implementation of the BMA's Guidance Note #20 on SPIs and the outcome of the consultation period for proposals made by the BMA for a new permanent license, non-Sandbox innovative insurer class and a new collateralized insurer class, with permanent capital requirements and the ability to fully-fund its liabilities via outwards reinsurance.

 

Originally published by Bermuda: Re + ILS.

 

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