The Bermuda Monetary Authority has not seen much growth from its innovations and sandbox licences launched in 2018.

This disclosure came from Moses Muoki, the deputy director of insurance supervision at the Bermuda Monetary Authority.

“We have an innovations track and a sandbox track where we encourage innovation,” he said during a discussion at the Bermuda Captive Conference 2023.

“We have had a lot of interactions with people who want to do certain things through the sandbox. We support those, but there has not been a lot of growth I can marvel about.”

The sandbox was set up to be an avenue for companies looking to test new technologies or business models on a limited number of clients in a controlled environment for a limited period of time. It is reserved for companies that will be undertaking licensable activities as defined under the Insurance Act 1978.

In a panel discussion called “Regulatory Roadmap: Navigating Bermuda's Captive Regulator Landscape”, the BMA was asked if their innovation opportunities would still be necessary when crypto and other emerging technologies became more mainstream.

Timae Flood, BMA assistant director, supervision, said: “With the advancements in that space, it will be a while before these are seen not to be emerging risks. I can foresee a time, much down the line, where it would fall into more traditional classes.”

However, she said not every company that comes to the BMA with a crypto connection automatically has to go into the innovation licence.

“Our classes, both the captives and the commercials, are flexible enough that they can be home to a number of different structures,” Ms Flood said.

Afnik Williams-Hyde, BMA assistant director, supervision (anti-money laundering/antiterrorist financing), brought laughter to the conference when she said firms needed to stop dreading phone calls from her organisation.

“You need to stop looking at it like that,” Ms Williams-Hyde said. “At the end of the day, we are here to make sure Bermuda’s reputation is upheld.”

She said the BMA is not against industry.

“We have to look at it as a collaborative effort,” she said. “When we call up to say we will have an on-site visit, it should be exciting.”

Ms Williams-Hyde said it was important that Bermuda be compliant with international standards.

“If we are not compliant with those standards, then that could have a detrimental effect,” she said.

The BMA is looking to attend more conferences and forums.

“Our mandate is not to expressly promote Bermuda,” Ms Flood said. “But we will sit behind those organisations such as the Bermuda Business Development Agency, whose mandate is to promote Bermuda. We will provide details of the robust regime that we have in place at the BMA.”

The panel was moderated by Michael Fahy, counsel, regional legal and compliance leader, senior vice-president, Marsh McLennan.