The Bermuda Monetary Authority (BMA) has issued the first licence under its innovative Insurance Regulatory Sandbox to AkinovA, an electronic marketplace for the transfer and trading of reinsurance risks.
The sandbox, which launched in July 2018, is a framework, which allows companies to test new technologies and innovative products, services and delivery mechanisms to customers in a controlled environment.
The licence authorises AkinovA to enable cedents and intermediaries acting on their behalf to transfer (re)insurance risk to investors using its electronic platform.
Additionally, it permits AkinovA to provide integrated news, data, analytics and communications to marketplace participants.
Henri Winland, CEO of AkinovA, said the company chose Bermuda as its first regulated operating base due to the domicile’s “willingness and desire to innovate within the insurance sector”.
Winland explained: “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.''
“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.”
Brad Adderley, AkinovA’s Bermuda counsel and partner at Appleby, said his firm was “very pleased to help AkinovA forge and continue to develop what they need to serve their clients”.
He commented: “We are grateful for the support we have had, and continue to have, from the BMA to develop the right framework needed for AkinovA to serve its clients as a pure play infrastructure provider, whilst preserving its independence.”
The sandbox is part of Bermuda’s strategy to remain at the forefront of providing innovative solutions in the insurance, insurance-linked securities, and captive markets.
David Burt, premier of Bermuda, said bringing developments to market in a regulatory landscape that does not always provide the necessary flexibility is “one of the largest hurdles facing the global insurance sector”.
He added: “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.”