Artificial intelligence and machine learning technologies are set to be used by the Bermuda Monetary Authority to enhance its operations.

The regulator will build an internal innovation lab to further what it terms as supervision technology, or SupTech.

The technology is aimed at enhancing regulatory efficiency and risk-based supervision.

In its 2019 business plan, the BMA included a short statement on the ambition of SupTech, and also mentioned it is to consult on two proposed new (re)insurance classes; one being collateralised reinsurance, the other a non-sandbox innovation class.

Additionally, the regulator will continue its sandbox and innovation hub projects that are used as areas where approved enterprises can run trials of new and disruptive innovations in the financial sector. The BMA is to launch a separate sandbox and innovation hub for fintech firms that specialise in digital asset businesses.

It is also developing legislative frameworks in the areas of special purpose insurers and “new class of intermediaries and exchanges”.

Jeremy Cox, BMA executive chairman, noted that globalised markets have become more complex and interdependent on national and international standards.

“The BMA will continue to focus on protecting Bermuda by managing threats to our credibility and ensuring that regulatory frameworks are aligned with international standards, while maintaining pragmatism,” he said.

The BMA also intends to strengthen its technology infrastructure and address cyber-risk threats.

This year is the 50th anniversary of the regulator, and to mark those five decades it is expanding its community outreach through fundraising tag days and denim days. It has identified five non-profit organisations to benefit from “BMA Days of Giving”. Beyond this, a total of 21 Bermuda charities will benefit from monies raised by staff participating in its “Charitable Fridays” denim days this year.

Click on Related Media to read the BMA Business Plan