Bermuda Provides A Boost To Insurtech Innovation

Bermuda has established itself as a leading (re)insurance centre, which has one of the world's largest captive and insurance-linked securities ("ILS") markets.

The Bermuda Government and the Bermuda Monetary Authority ("BMA") which regulates the financial sector, recognise the importance of disruptive innovation in the insurance and financial services industry (as was demonstrated by its collaborative approach to the development of Bermuda's ILS regulatory and legislative framework). As a further boost to the insurance industry and to provide protection to policyholders, the Bermuda Government and the BMA recently introduced a new legislative and regulatory framework for establishing insurers and insurance intermediaries that carry on business in an “innovative or experimental manner”.

The Insurance Amendment Act 2018 amends the Insurance Act 1978 with effect from July 2018 and creates an InsurTech "regulatory sandbox" for the purpose of facilitating and promoting experimental and innovative applications of technology in the insurance sector. The BMA has also established an Innovation Hub to promote InsurTech innovation.

 

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