Risk trading insurtech AkinovA secures Bermuda's first regulatory sandbox licence

AkinovA, an electronic marketplace for the transfer and trading of re/insurance risks, has received the first insurance regulatory sandbox licence from the Bermuda Monetary Authority (BMA).

The licence will enable AkinovA's Bermuda trading subsidiary to carry out business using its electronic trading platform under the BMA's new regulatory sandbox regime.

The new legislative framework, which came into effect in July 2018, is designed to help companies 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. AkinovA is also permitted to provide integrated news, data, analytics and communications to marketplace participants.

Earlier in January, specialist reinsurer Hiscox Re and Japanese insurance group MS&AD  invested in the start-up, and assisted in the development of AkinovA's trading platform ahead of its launch by, collaborating with active participants in the re/insurance value chain.

“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."

Winand added: "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, David Burt 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. 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.

"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.”

More of today's stories:

Munich Re appoints new CEO of Canada and Temple Insurance Company BIBA names new chairman replacing Lord Hunt; adds non-exec director Munich Re enters global telematics partnership with The Floow