{"id":862,"date":"2025-10-14T18:59:39","date_gmt":"2025-10-14T18:59:39","guid":{"rendered":"http:\/\/fictionuncovered.com\/?p=862"},"modified":"2025-10-16T15:37:18","modified_gmt":"2025-10-16T15:37:18","slug":"bermudas-bma-set-to-consult-industry-on-new-parametric-spi-class-convergence-2025","status":"publish","type":"post","link":"http:\/\/fictionuncovered.com\/index.php\/2025\/10\/14\/bermudas-bma-set-to-consult-industry-on-new-parametric-spi-class-convergence-2025\/","title":{"rendered":"Bermuda\u2019s BMA set to consult industry on new parametric SPI class: Convergence 2025"},"content":{"rendered":"

This content is copyright to www.artemis.bm<\/a> and should not appear anywhere else, or an infringement has occurred.<\/p>\n

During a panel session earlier today at the ILS Bermuda Convergence 2025 conference, it was announced that the Bermuda Monetary Authority (BMA) is currently in the final stages of implementing a new special purpose insurer (SPI) class that will primarily focus on the use of parametric triggers.
\n<\/span>
\n\"bermuda-monetary-authority-bma-logo\"The announcement was made by Taijaun Talbot, Assistant Director, Supervision (Insurance), BMA, who spoke during a panel session that featured Sarah Demerling, Partner at international law firm, Walkers Bermuda.<\/p>\n

Early in the session, Demerling highlighted how the industry is seeing an increasing interest in novel insurance-linked securities (ILS) structures, particularly climate-linked parametric triggers.<\/p>\n

With this, she then asked Talbot how the BMA is preparing for these innovations from a regulatory standpoint, prompting him to make the announcement.<\/p>\n

\u201cLast year, I mentioned that we (BMA) was in the research phase for a new special purpose insurer class, which will look at the use of parametric triggers. We\u2019re now in an advanced stage where we\u2019re nearing internal approvals and we\u2019ll be going out to consultations shortly to implement this new class,\u201d Talbot explained.<\/p>\n

\u201cWe see the potential for parametric covers to help fill the protection gap that exists, and we\u2019ve had success in our special purpose insurer class.\u201d<\/p>\n

Talbot continued: \u201cIt\u2019s a low-risk class due to its full collateralized nature. So, we want to leverage the success we\u2019ve had in the SPI class and give parametrics a space to evolve.\u201d<\/p>\n

Furthermore, Talbot also suggests that this new SPI class will extend the potential of the BMA\u2019s current SPI class, but in a bespoke manner for the parametric marketplace.<\/p>\n

\u201cEssentially, it will be built from the foundations of the current SPI class \u2013 fully collateralized, with contractual certainty and sophisticated participants. But we will look at some expanded features of parametric such as the use of swaps, derivatives, basis risk, and sophistication of various cedents.<\/p>\n

\u201cSo, it\u2019ll basically enhance what we have and be bespoke for parametric covers,\u201d he concluded.<\/p>\n

Bermuda\u2019s BMA set to consult industry on new parametric SPI class: Convergence 2025<\/a> was published by: www.Artemis.bm<\/a>
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This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. During a panel session earlier today at the ILS Bermuda Convergence 2025 conference, it was announced that the Bermuda Monetary Authority (BMA) is currently in the final stages of implementing a new special purpose insurer (SPI) class that […]<\/p>\n","protected":false},"author":1,"featured_media":864,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[17],"tags":[],"_links":{"self":[{"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/posts\/862"}],"collection":[{"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/comments?post=862"}],"version-history":[{"count":2,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/posts\/862\/revisions"}],"predecessor-version":[{"id":865,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/posts\/862\/revisions\/865"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/media\/864"}],"wp:attachment":[{"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/media?parent=862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/categories?post=862"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/tags?post=862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}