The BMA Proposes Regulatory Regimes for New LPI Classes
May 16, 2019
The Bermuda Monetary Authority's (BMA) latest consultation paper, New Insurers and Insurance Market Place, was issued on May 14 and outlines the BMA's proposed regulatory regimes for new classes of Limited Purpose Insurers (LPIs)—inclusive of reinsurance—and a new category of an intermediary (insurance market places).
The BMA framed the proposal in context of Bermuda's reputation for "providing innovative solutions in the insurance, insurance-linked securities and captive markets," and also pointed to the jurisdiction's recent establishment of an insurance regulatory sandbox and insurance innovation hub.
Furthermore, the BMA explained that it recognizes "the growing importance of disruptive innovation in the insurance and wider financial industry and the critical role that innovation plays in promoting efficiency and enhancing competitiveness in the market."
Supporting the Bermuda insurance market's reputation for innovation, the BMA has specifically proposed the introduction of new classes of LPIs (a fully collateralized reinsurer class (collateralized insurers) and an innovation class for innovative business models using digital assets (Class IIGB)).
The BMA also proposed to introduce a new category of intermediary in response to growing interest in the formation of InsurTech-related insurance market places.
The full proposal can be downloaded from the BMA website. Comments should be sent to the BMA, addressed to [email protected] no later than June 12.
May 16, 2019