The Bermuda Monetary Authority and Lloyd’s are to collaborate to foster innovation and education access between the world’s two major hubs for insurance and reinsurance.

Making the announcement today at the Bermuda Risk Summit, Patrick Tiernan, of Lloyd’s, said a meeting in Brussels was the springboard for the two jurisdictions to work more closely together.

Mr Tiernan, who is chief of markets, said: “It’s often said, and it’s never truer than in rooms like this, that despite all of the capital, the expertise and the underwriting that we say binds us together, it very often is the people that bind us together.

“The reason that we’re here today is because a bunch of folks from London went over to Brussels to meet a bunch of folks from Bermuda at the Abir [Association of Bermuda Insurers and Reinsurers] conference last September and we got to talking with John Huff [of Abir] and Craig Swan [of the BMA] and a few others and we considered if there was something more tangible to bind our communities together.

“I want to sign off today from Lloyd’s to sort of make an increasingly concrete commitment to working together on areas of mutual interest in the future.”

The BMA said later in a press statement that the initial focus will be on improving access to education academies and innovation through the Lloyd’s Lab and Bermuda Insurance Sandbox, supporting the sharing of risk expertise throughout the Lloyd’s and Bermuda markets.

The parties have committed to building a platform that will further enhance and strengthen the strategic capability within the two markets.

The initial collaboration on innovation, through the BMA and the Lloyd’s community on-island, will support the launch of a Lloyd’s Lab reinsurance cohort that specifically utilises the expertise of the Bermuda market in the first half of 2025.

The BMA said: “This will provide the BMA with an opportunity to share its skills and talent in Bermuda supported by the Lloyd Lab’s unique approach to fostering global innovation.

“Industry professionals from both markets will combine their capabilities and expertise to help tackle some of the world’s biggest challenges, including narrowing the protection gap and addressing emerging risks.”

Lloyd’s Lab provides a ten-week fast-track incubator to enable an environment where great ideas can develop into practical outcomes with the support of industry experts.

In conjunction with this, the BMA said, the Bermuda Insurance Sandbox plays a crucial role in fostering innovation and growth within the insurance industry, providing a controlled environment where new ideas and technologies can be tested, helping to drive forward progress and development in the sector.

Another area of the collaboration is educating and inspiring future professionals in the industry, which is centred on training and improving access to the BMA’s, Lloyd’s and Abir’s extensive resources.

As part of this, Lloyd’s said, its Academy training programmes will be available to Bermuda market participants in-person and virtually.

In addition, Lloyd’s will partner with Bermudian-based experts to roll out a suite of Bermuda market courses and leverage the existing educational offerings of Abir with Bermuda College.

Members of Abir will also join the initiative to provide access to education and mentorship opportunities.

Mr Swan, the chief executive of the BMA, said: “The BMA is excited to collaborate with Lloyd’s in our shared commitment to enabling innovation and excellence in the insurance industry.

“By working together, we aim to create resilient, robust and dynamic insurance markets that will continue to serve global communities.

“This partnership marks a significant milestone in our efforts to foster collaboration, enhance regulatory and market capabilities and deliver practical solutions that address the evolving needs of people and markets.

“We look forward to a successful partnership that paves the way for greater progress and success in both the Lloyd’s and Bermuda markets regarding narrowing protection gaps.”

Mr Tiernan was also quoted in the BMA statement as saying: “We have a long history of our market participants operating across both Lloyd’s and Bermuda, and I am delighted to announce our joint commitment to further strengthen and enhance our combined capabilities.

“This partnership presents a truly exciting opportunity to bind together the two markets to deliver the best possible solutions for our customers and make meaningful, innovative progress together.”

John Huff, president and CEO of Abir, said: “The symbiotic relationship between Lloyd’s and the Bermuda market has never been more important to tackle the risk challenges of economies around the world.

“Abir and its member companies are proud of their significant capacity and leadership within the Lloyd’s market and look forward to working together to strengthen market innovation and education of the next generation of talent.”