Bermuda: Insurance Laws and Products

Bermuda's managing general agent market is evolving rapidly as capacity providers demand better governance, aligned incentives, and transparent oversight. With regulatory scrutiny intensifying and new capital structures emerging, the island's sophisticated infrastructure positions it uniquely to accommodate the next generation of MGA platforms that combine specialist underwriting expertise with dedicated capital vehicles.

Bermuda has emerged as the dominant global hub for life and annuity reinsurance, now holding over $900 billion in US life and annuity liabilities and accounting for 84% of all US reserves ceded offshore. This analysis examines how the island's sophisticated regulatory framework, purpose-built infrastructure, and commercially engaged regulator have created a structural advantage that extends beyond its traditional catastrophe reinsurance roots into long-dated life business from the US, UK, and Asia.

The catastrophe bond market has officially broken records in H1 2026, with the highest number of deals settling in the first six months of any year.

The BMA released a Notice on 19 February 2026 announcing that it plans on reducing the regulatory burden for insurers while strengthening the efficiency and proportionality of insurance supervision.

The Notice announced a thoughtful initiative to streamline regulatory processes while maintaining robust prudential standards. The BMA’s objective is to remove unnecessary duplication and administrative friction that does not materially improve supervisory insight or policyholder protection.

The Plan provides important insight into the BMA’s regulatory direction, supervisory priorities and emerging developments that will shape how insurers operate going forward and how Bermuda continues to strengthen its regime. We have highlighted key developments that are outlined in the Plan as they relate to the insurance sector and what they mean for insurers conducting business in Bermuda.

It's been an exceptionally busy and record first half of the year for the catastrophe bond sector, with a number of first-time sponsors entering the market.

The new policy permits Limited Purpose Insurers (Captive Classes) to utilize recognized stablecoins for various critical functions, including premium collection, claims payment, and as part of their capital base.

Bermuda's long-term reinsurance sector is experiencing a new phase of complexity and scrutiny but will remain strong, say Max Tetlow and Cathryn Minors of Appleby.