The Bermuda Monetary Authority (BMA) released a discussion paper that it says may lead to new regulations around the use and disclosure of artificial intelligence (AI) systems by firms domiciled in the offshore risk finance hub.
According to the BMA document, the proposed framework could significantly reshape how reinsurance and insurance companies operating in Bermuda deploy AI technologies, particularly in critical areas like catastrophe modeling and underwriting.
Focus on Risk and Catastrophe Modeling
The 31-page discussion paper, published Wednesday, places particular emphasis on AI applications in catastrophe modeling, a cornerstone of Bermuda's reinsurance industry.
The BMA notes that AI could "significantly enhance underwriting precision for catastrophe modelling and emerging risks" while supporting "claims processing automation and fraud detection in large commercial policies."
