By Chris Garrod, William Cooper, Jacqueline King
Bermuda has recently introduced a new legislative framework for establishing insurers and insurance intermediaries that carry on business in an “innovative or experimental manner”. The Insurance Amendment Act, 2018 (the “Amendment Act”), which came into effect on 23 July 2018, amends the Insurance Act, 1978 (the “Act”). It creates an insurtech ‘regulatory sandbox’ for the purpose of facilitating and promoting experimental and innovative applications of technology in the insurance sector in a controlled environment. The sandbox is complemented by the Innovation Hub that the Bermuda Monetary Authority (the “BMA”) has established to promote insurtech innovation.
The Amendment Act creates two new classifications for Innovative Insurers: Class IGB (an insurer carrying on general business in an innovative or experimental manner) and Class ILT (an insurer carrying on long-term business in an innovative or experimental manner). There are also new classifications for Innovative Intermediaries: insurance agents (“IAs”), insurance brokers (“IBs”) and insurance managers (“IMs”) carrying on their respective business in an innovative or experimental manner.