Notice - New Insurer Class - Parametric Special Purpose Insurer (2026-01-21)

Summary

This notice from the Bermuda Monetary Authority announces that it has published a Consultation Paper proposing a new dedicated insurer class called the Parametric Special Purpose Insurance (PSPI) class. The proposal aims to create a fit-for-purpose regulatory framework to support Bermuda alternative capital (re)insurers adopting parametric business models, and to give prospective registrants a new pathway into the Bermuda market.

• Purpose: Support growth of a robust parametric insurance market and help close protection gaps linked to climate change and emerging risks.
• Mechanism: A Consultation Paper (CP) has been published on the BMA website inviting industry feedback on the proposed PSPI framework.
• Scope: Targets Bermuda alternative capital (re)insurers using parametric models and new entrants seeking to register in this class.

This is an informational notice announcing the consultation process; it does not itself impose binding requirements on insurers at this stage, pending finalisation of the PSPI framework.

Applies to

Bermuda alternative capital (re)insurers, prospective registrants seeking parametric special purpose insurer class registration