New Bermuda ILS marketplace registers

14-10-2021

New Bermuda ILS marketplace registers

shutterstock/Jarretera

A new insurance linked securities marketplace has registered with the Bermuda Monetary Authority (BMA) as an “innovative intermediary” IMP (insurance marketplace provider) under its regulatory sandbox program. 

According to the BMA’s website, Blackbird will be a “closed-end liquid market for structured, syndicated and modelled cyber exposure and other specialty risk as fixed-income products”.

Its entry adds: “The market facilitates the trading of INSURANCE LINKED SECURITY BONDS between insurers, reinsurers and sophisticated investors.”

The regulatory sandbox provides “an innovation track” for companies to test new technologies or business models to a limited number of clients in a controlled environment for a limited period. Blackbird’s license will run to September 2022. 

The company joins other sandbox participants: Kettle, underwriting using machine learning models, initially focussed on wildfires; and Nayms Ecosystems, which is developing “smart insurance contracts” for underwriting digital asset risk to provide a liquid market for ILS trading. AkinovA (Bermuda), the marketplace to transfer and trade insurance risks, “graduated from the sandbox in December 2020 and was granted a license as an insurance marketplace provider the following month.

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Bermuda Re