Bermuda's regulatory sandbox turns insurtech into investable business models

Investors now have greater comfort in backing the insurtech sector as business models have shifted from experimentation to regulated, investable entities. This transition was facilitated by the Bermuda Monetary Authority's 2018 creation of an innovation hub, a regulatory sandbox, and new insurance classes for innovative insurers. The BMA adopted a principles-based mindset, focusing on desired outcomes while allowing business models to evolve within the regulatory framework. Ensuro, a blockchain-enabled insurer using digital assets for parametric insurance products, moved through this sandbox into full licensing. This process turned insurtech from a niche phenomenon into a regulated business model that is commercially attractive to investors.