Bermuda: Leading the ReinsurTech Revolution
Bermuda could spark a “ReinsurTech” revolution, which combines InsurTech with the island’s reinsurance expertise. The business environment on the island is also more accommodating to innovation than any other jurisdiction, according to panelists at an industry Roundtable of experts hosted by AdvantageGo, the commercial insurance and reinsurance software platform from NIIT Technologies.
Highlights from the roundtable include:
- Whether the InsurTech bubble could be set to burst, with some panel members arguing that this so-called innovation is filled by hype rather than commercial viability
- Where the next breakthrough will be in data analysis via robotics, artificial intelligence and Blockchain.
- Examples of how governments and regulators, such as the Bermuda Monetary Authority are encouraging InsurTech innovation and adoption
- The biggest winners from the InsurTech revolution could be the brokers if they respond to the digital revolution with inventive solutions, which harnesses their vast levels of data
‘The Innovation and InsurTech in Bermuda Roundtable’ panelists discussed that the island will help spearhead InsurTech innovation by creating an environment that allows the global reinsurance sector to build and test new products as quickly as technology develops.
“Bermuda has a real advantage. It is not shackled by the complexities of London, and the island should be able to innovate and develop new types of products that relate closely to the technology that is now available,” said John Racher, Head of UK Operations and International Growth, AdvantageGo.
Bermuda recently passed the Insurance Amendment Act 2018 in June to allow companies to test InsurTech solutions before they invest in operational deployment. Panelists at the Roundtable all agreed that although many InsurTech start-ups are not constrained by insurance and reinsurance regulations, the smart technology firms will ensure they comply with financial regulation.
“The opportunity for InsurTech and ReinsurTech start-ups to use Bermuda as a base for innovation has never been better,” said Racher. “Supported by Bermuda’s government and regulator, the Island can continue to attract technology to the reinsurance industry without compromising any underlying regulatory principles.”
“I think the market in Bermuda has been excellent at creating innovative structures to transact reinsurance business,” said Simon Storey Principal and Chief Technology Officer, Nephila Capital. “The reinsurance community has benefited from being able to work very closely together on these structures and transactions. One of our fundamental objectives has always been to reduce the friction that exists throughout this process, this was done with the ultimate goal of creating an effective and efficient marketplace for risk transfer.”
The Roundtable discussion reflected some of the findings in AdvantageGo’s InsurTech Survey of insurance and reinsurance executives that found upgrading technology is the number one concern for industry leaders. Of those surveyed, 55% of respondents said they were looking at projects involving machine learning, 52% at artificial intelligence and 52% on blockchain.
AdvantageGo is the innovative commercial insurance and reinsurance product family from NIIT Technologies. It harnesses the power of proven, functionally-rich core solutions and augments it with the energy and culture of being an InsurTech leader. AdvantageGo enables insurers and reinsurers around the world to fuse the traditional with digital, helping them to rapidly adapt, drive change and succeed with agile software and Microservices.
AdvantageGo – revolutionising insurance software.
About NIIT Technologies
NIIT Technologies is a leading global IT solutions organization, enabling its clients to achieve real world business impact through unparalleled domain expertise working at the intersection of emerging technologies. The Company focuses on three key verticals: Banking and Financial services, Insurance, Travel and Transportation. This domain strength combined with leading-edge capabilities in Analytics, Cloudification, Cognitive automation, and Digitalization, helps clients innovate business, automate process and industrialize AI. With over 9500 people serving clients across Americas, Europe, Asia, and Australia, NIIT Technologies fosters a culture that promotes innovation and constantly seeks to find new yet simple ways to add value for its clients.