AkinovA (Bermuda) Ltd, an electronic marketplace for the transfer and trading of insurance risk, has been granted the first “insurance marketplace provider” licence by the Bermuda Monetary Authority.

The company becomes the first to graduate from the BMA’s regulatory sandbox, a testing ground for innovators to try out new ideas in a controlled environment with a limited number of clients.

AkinovA said its new, full licence enables it to facilitate the transfer of insurance and reinsurance risks by cedants, brokers and agents, to a wide range of capacity providers, both traditional and non-traditional.

It is also licensed to facilitate the trading of insurance contracts securities or collateral, sourced through catastrophe bonds, notes or preference shares, AkinovA, the London-based parent company of AkinovA (Bermuda), said.

The company claimed that it was the first new regulated insurance marketplace in 150 years since the British Parliament passed the Lloyd’s of London Act in 1871.

Dennis Mahoney, Industry veteran, AkinovA adviser and past chairman of the World Insurance Network, said: “AkinovA enables cover buyers, brokers and risk carriers to strive for the mutual benefits which can only be delivered by a trusted, secure, frictionless, transparent, efficient platform. Congratulations Bermuda!”

The new licence from the BMA enables AkinovA to allow brokers, agents and capital providers in Bermuda, the US, UK, EU and Canada to join the marketplace and transact with market participants representing capital in over 40 jurisdictions.

AkinovA had praise for the BMA’s treatment of the company and the framework that has allowed its innovative idea to become a reality.

“In its approach to AkinovA’s enhanced licence, the Bermudian authorities have once again demonstrated their commercial credentials and shown that the jurisdiction is at the forefront of providing innovative solutions in the re/insurance, ILS and captive insurance markets.

“Combined with its regulatory probity, this is one of the many reasons why Bermuda is the leading financial centre for modern re/insurance.”

Henri Winand, CEO of AkinovA, said: “Today’s risk environment is more dynamic than ever as evidenced by an ongoing pandemic, the impact of business interruption and dramatically increased cyber exposures across the board.

“This is the moment when brokers are hunting for the right capital to deliver the right products to their clients at the right price and when insurers and reinsurers seek better and more effective ways to connect with capital markets and new risks.

“Add to this data providers and modellers seeking new sources of revenue and investors hunting for new sources of yield. All these require a neutral, digital-first and regulated electronic environment within which risks and capital take centre stage animated by data centric brokers and third party, data, news and analytics providers.”

One other company remains in the BMA sandbox, Nayms Ecosystems Ltd, which is testing a smart contract system that allows insurance entities to create collateralised and tradable reinsurance contracts.

ChainThat Ltd, with its blockchain-driven electronic platform, allowing brokers, insurance companies and reinsurs to do business on a single platform, is operating in the innovation hub, a second track of the BMA’s innovation framework, for companies not ready yet to go into the sandbox.