Many will have heard of ‘fintech’, a term described at the recent World Economic Forum as the use of technology and innovative business models in financial services.

Two insurance-related derivatives of fintech are ‘insurtech’ and ‘reinsurtech’. These terms are used to describe the various emerging technologies and innovative business models that have the potential to transform the insurance industry and reinsurance industry respectively (hereinafter used interchangeably as insurtech).

For the purposes of a topical example of insurtech, we can look to Bermuda’s roads. The recent coverage in this newspaper around road safety highlights the shockingly high road traffic accident and injury figures in Bermuda. Local insurers may decide to employ telematics (sensors that are able to process and distribute information via telecommunication devices) on the vehicles of insureds to monitor speed and any number of other characteristics. The collected information could then be used to eliminate dangerous drivers, or change dangerous driving behaviour by increasing premiums for certain insureds or demographics of insureds, for example.

Insurtech is relevant to nearly all if not all areas of the insurance and reinsurance industry, and according to a report compiled by Aon, has garnered approximately US $14 billion in cumulative investment.

The focus of this article will be on captive insurers, and more specifically the potential for Bermuda to play host to captives harnessing insurtech.

Read More

Share
Twitter LinkedIn Email Save as PDF
More Publications
8 Aug 2019 |

Summary of Economic Substance Requirements in Bermuda, the British Virgin Islands and the Cayman Islands

Economic Substance Requirements in Bermuda, the British Virgin Islands and the Cayman Islands

Contributors: Shana Simmonds
5 Aug 2019 |

Probationary Periods – Importance of Dates when Considering Extensions

New employment is not always a smooth process. The employer and employee both need to adjust to new ...

24 Jul 2019 |

Legal Frontiers in Bermuda

The Asia-Pacific region has seen a surge of fintech start-ups, service providers, suppliers, investo...

Contributors: Fiona Chan
19 Jul 2019 |

Landscape of Bermuda financial sanctions

In the ever-changing world of politics and their related global financial sanctions, it is imperativ...

18 Jul 2019 |

Bermuda ILS overhaul welcomed but will new vehicles take off?

The ILS market has broadly welcomed moves by the Bermuda Monetary Authority (BMA) to create a new co...

8 Jul 2019 |

Bermuda to introduce new classes of insurers

Bermuda’s commitment to providing innovative solutions in the ever-evolving insurance marketplace ...

3 Jul 2019 |

Directors Unexpected Payroll Tax Liability

Payroll tax is levied against every employer, employee, self-employed person and deemed employee. Wh...

1 Jul 2019 |

Latest Developments in Bermuda’s Economic Substance Regime

The Economic Substance Amendment Act 2019 (Amendment Act) became operative on 28 June 2019. Bermuda ...

Contributors: Sally Penrose
26 Jun 2019 |

Regulatory Headwinds

Faced with increased scrutiny from regulators on both global and jurisdictional levels, businesses m...

Contributors: David Dorgan
24 Jun 2019 |

Appleby’s Adderley: Bermuda Eases Path to Collateralised ReInsurance

Partner Brad Adderley speaks to A.M. Best at the recent Bermuda Captive Conference. Brad says “Ber...