The Bermuda Monetary Authority was praised as a world-class financial authority by MPs in the House of Assembly on Friday.

The plaudits came after legislators passed a Bill to create a new class of innovative insurer through the Insurance Amendment Act 2022.

Presenting the Bill to the House, Wayne Furbert, the Minister of Transport, said the legislation consisted of two components that would create “an innovative hub and a regulatory sandbox which allows innovative insurers to be licensed for a limited period in a controlled environment”.

Mr Furbert added that the Act would “further enhance” the framework for such insurers and streamline the regulatory framework for dual licensed insurers.

He said: “As more jurisdictions introduce robust regulatory frameworks for digital asset businesses … as the overall digital asset business matures, introducing Class IILT could be a growth area for insurance indemnity coverage for the long-term sector.”

Outlining the nuts and bolts of the Bill, David Burt, the Premier and Minister of Finance, said: “It amends the Insurance Act 1978 to provide for Class IILT insurers as a new class of insurer subject to the authority's regulatory powers, to provide enhancements relating to the authority's regulatory powers for innovative intermediaries, to make consequential amendments to the Bermuda Monetary Authority Act 1969 and the Insurance Accounts Regulations 1980, and to provide for matters related and connected to the foregoing.

“The Bermuda Monetary Authority is continuing to work to ensure that they remain on the forefront responding to the needs of industry, to ensure that Bermuda can be that place of innovation.

“What is important is that this is really about the future of finance, the convergence of finance; what we are going to see as various parts come together. All the items under the umbrella of the regulatory purview of the BMA, and in this particular manner, we are continuing to advance the amendments for the Insurance Amendment Act.

“I think it is important to know that the progress that is taking place throughout the digital finance space is something that is happening here.

“What is important to recognise is the BMA is an incredibly well-respected regulator. They maintain that separation and fiercely guard and treasure their independence, and it is what has set Bermuda up for success in our financial services space.”

The Premier added: “Bermuda is far above other countries, and other countries are continuously copying what Bermuda is doing.

“They may take our laws, but the one thing they cannot take is the expertise that resides at the BMA, and that’s what sets us apart.”

Earlier, Mr Furbert declared that amendments represented “a collaborative effort” with industry stakeholders in the past year, with “no material objections to the proposals”.

The legislation was supported by the opposition One Bermuda Alliance.

OBA leader Cole Simons said: “I would like to commend the BMA and the Ministry of Finance for their work in this piece of legislation.

“We are involved in a digital asset environment and, as a consequence, our legislation has to be up to date accordingly so that we can be competitive and on the cutting edge.

“I bless this legislation. It is cutting edge and it is the way forward if our market is to be competitive.

“This is a new marketplace development and the next decade will lead to the convergence of capital markets, artificial intelligence and new technology like blockchain.”