The Bermuda Monetary Authority (BMA) has granted its first insurance regulatory sandbox license to insurtech AkinovA, an electronic marketplace for the transfer and trading of re/insurance risks.
BMA’s Innovative Regulatory Sandbox Regime came into effect in July 2018, to allow companies to test new technologies and offer innovative products, services and delivery mechanisms to customers in a controlled environment.
With this authorisation, AkinoVa is permitted to enable cedents and intermediaries acting on their behalf to transfer re/insurance risk to investors using its electronic platform. It is also permitted to provide integrated news, data, analytics and communications to marketplace participants.
“One of the largest hurdles facing the global insurance sector is the challenge of bringing developments to market amid an insurance regulatory landscape that does not always provide the flexibility necessary to accommodate new concepts at the same speed as the technology develops," said Bermuda premier David Burt.
Burt continued: "The AkinovA team brings with it an extensive and somewhat unique blend of experience from insurance, capital markets and technology that we believe is needed to launch a successful electronic marketplace for the re/insurance industry. We are confident that under the Bermuda Regulatory framework, they will help drive growth and innovation in the insurance market."
AkinovA is backed by an advisory board with experience in insurance, capital markets and technology. While it is an independent marketplace, AkinovA’s investors include Hiscox Re and MS&AD.
Henri Winand, CEO of AkinovA, commented: “We selected Bermuda as our first regulated operating base because of their willingness and desire to innovate within the insurance sector. The regulators understood, right from the word “go”, the need to establish an appropriate regulatory framework for what AkinovA is building for its users, to ensure AkinovA’s independence as an infrastructure provider and a digital marketplace.”
Winand continued: “It was really important that AkinovA is not set to compete with the very ecosystem it serves whilst being able to provide more than basic trading with the inclusion of news, data, analytics from its users and partners and secure communications to marketplace participants.”
BMA, Insurtech, Reinsurance, Cyber, AkinovA, Bermuda