Appleby's insurance team acted as Bermuda counsel to AkinovA on all matters leading up to the completion of a first of its kind parametric cyber risk transfer.
This transaction was carried out electronically with full regulatory oversight from the Bermuda Monetary Authority (BMA). AkinovA has an Insurance Regulatory Sandbox licence that was issued by the BMA in May 2019. Hiscox developed, structured and provided capital for this transaction, with Guy Carpenter acting as broker and PCS as the reporting agent.
Appleby's role in 2019 included obtaining a license from the Minister of Finance for AkinovA (Bermuda) Ltd to carry on business in Bermuda, advice relating to a corporate cross-border restructuring and regulatory advice and filings in relation to an Insurance Act 1978 sandbox application and obtaining an insurance license for the company to do business in accordance with the same legislation.
AkinovA said: This first of its kind transaction is an important step towards creating new capacity urgently needed to underwrite the huge cyber risks which continue to emerge globally. Largely rear view-mirror actuarial assessments of cyber risks can only go so far. For new capacity to come to the market, cyber risks have to be tradable and conducted electronically within a regulated marketplace. That's why AkinovA was created.
Appleby said: Congratulations to the AkinovA team on the completion of the first cyber parametric instrument trade. As an independent marketplace, AkinovA is modernizing and growing the re/insurance market for all to benefit.
Partners Brad Adderley, Matthew Ebbs-Brewer and Counsel Matt Carr have advised AkinovA throughout the lead-up to this significant transaction.