Market Intelligence

The Bermuda Monetary Authority has issued three major regulatory initiatives advancing Bermuda's digital asset framework, covering artificial intelligence governance, asset tokenisation clarity, and stablecoin usage in insurance and investment funds. These developments reflect Bermuda's commitment to maintaining a progressive, risk-based regulatory environment that balances innovation with consumer protection and financial stability.

As artificial intelligence becomes increasingly prevalent in Bermuda litigation, lawyers and clients must navigate critical questions about trust, verification, and confidentiality. Recent cases in Bermuda and overseas are establishing expectations for AI use in legal practice, from document discovery to drafting and research, while highlighting the risks of unchecked reliance on AI-generated content.

The Bermuda Monetary Authority has introduced new requirements for police clearance certificates when vetting key personnel at anti-money laundering and anti-terrorist financing regulated financial institutions. This policy change affects licensing, recruitment, and ownership transitions by requiring criminal record documentation from countries where individuals have resided, with specific implications varying across different sectors of Bermuda's financial services industry.

The 2026 Bermuda International Life and Annuity Conference explored Bermuda's expanding role in addressing global retirement and longevity challenges, with industry leaders examining the jurisdiction's regulatory strength, growing APAC market presence, and capacity to support long-term insurance solutions. Key discussions centered on closing the worldwide retirement gap, the strategic use of private credit, and what sustains Bermuda's competitive position in the international reinsurance marketplace.

The Bermuda Monetary Authority has completed its consultation on proposed new rules for the supervision of Internationally Active Insurance Groups, introducing enhanced qualitative requirements aligned with the Common Framework for the Supervision of IAIGs. These proposals would establish strengthened standards for corporate governance, risk management, liquidity oversight, and supervisory reporting for insurance groups operating across multiple jurisdictions.

The Bermuda Monetary Authority is implementing new Insurance (Internationally Active Group Supervision) Rules 2026 to align Bermuda's regulatory framework with international standards for Internationally Active Insurance Groups set by the IAIS. These proposed rules introduce enhanced governance, risk management, and reporting requirements for IAIGs domiciled in Bermuda, with final rules expected in Q4 2026 following a consultation period that closed on September 30, 2026.