BMA signals principles-led approach to AI

The Bermuda Monetary Authority (BMA) has confirmed it will pursue a proportionate, risk-based and principles-led approach to the use of artificial intelligence across the island’s financial services sector, following industry feedback on its AI discussion paper.

In a stakeholder letter published this week, the regulator said respondents broadly supported embedding AI governance within existing regulatory frameworks, rather than introducing stand-alone AI rules. Areas such as governance, risk management, conduct, cyber security and third-party oversight will remain the primary lenses through which AI use is assessed.

The BMA said it does not intend to take a prescriptive approach, instead tailoring supervisory expectations to the materiality and risk profile of individual AI use cases, including those deployed by insurers and reinsurers. Stakeholders also emphasised the importance of maintaining Bermuda’s reputation as an innovation-friendly jurisdiction while ensuring appropriate safeguards.

The Authority confirmed it will continue to monitor international regulatory developments and engage with industry before considering any further policy or supervisory enhancements. For now, the focus remains on clarity of expectations and alignment with global best practice, rather than the introduction of new AI-specific regulatory requirements.

The update reinforces Bermuda’s broader fintech strategy, signalling regulatory continuity and measured evolution as AI adoption accelerates across underwriting, claims and risk management functions.

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