Reinsurance News

AkinovA receives first regulatory sandbox licence from Bermuda regulator

14th May 2019 - Author: Matt Sheehan

AkinovA, an electronic marketplace for the transfer and trading of insurance risk, has become the first company to be granted an insurance regulatory sandbox licence from the Bermuda Monetary Authority (BMA).

Bermuda reinsuranceThe licence will authorise AkinovA (Bermuda) Ltd, the company’s Bermuda trading subsidiary, to carry out business using its electronic trading platform under the BMA’s new regulatory sandbox regime.

The legislative framework, which came into effect in July 2018, is designed to enable companies to test new technologies and offer innovative products, services and delivery mechanisms to customers in a controlled environment.

The authorisation permits AkinovA to enable cedents and intermediaries acting on their behalf to transfer re/insurance risk to investors using its electronic platform.

Additionally, AkinovA is permitted to provide integrated news, data, analytics and communications to marketplace participants.

“We selected Bermuda as our first regulated operating base because of their willingness and desire to innovate within the insurance sector,” said Henri Winand, CEO of AkinovA.

“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,” he 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”.

The Premier of Bermuda, the Hon. E. David Burt, also commented: “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.”

“Technology-enabled innovations in the insurance industry aims to offer simpler products and streamlined customer experiences,” he explained. The challenge for many insurance companies is to determine the best way to embrace the financial technology imperative given their strategic vision and business objectives.”

Burt 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.”

Finally, Brad Adderley, AkinovA’s Bermuda Counsel and Partner at Appleby, stated: “We are very pleased to help AkinovA forge and continue to develop what they need to serve their clients.

“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.”

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