Bermuda: Technology

The Personal Information Protection Act 2016 (PIPA), which came into force on 1 January 2025, represents Bermuda’s first comprehensive date protection regime. The legislation regulates the collection, use, disclosure and storage of personal information with the objective of protecting individuals’ privacy while allowing organisations to use data in a responsible and transparent manner.

The Bermuda Monetary Authority (BMA) recently published a discussion paper on 30 July, 2025: The Responsible Use of Artificial Intelligence in Bermuda's Financial Sector (Discussion Paper)...

This is the first of a two-part article on how artificial intelligence contracts can be used to manage the development and use risks associated with such transformative technology.

The Bermuda Monetary Authority has released a consultation paper on artificial intelligence regulation in financial services, proposing a risk-based framework that extends existing regulatory requirements rather than creating new licensing regimes. Financial institutions now face critical decisions about how to classify AI use cases, implement governance controls, and prepare for heightened scrutiny of generative and agentic AI systems before the October 30 feedback deadline.

Senior executives from Bermuda's reinsurance market gathered in Monte Carlo to discuss the industry's current state and future challenges. While the market remains profitable with strong capital positions, participants debated whether underwriting discipline can be maintained amid softening rates and the pressure to deploy excess capital. The roundtable also explored emerging opportunities in complex risks like data centres, casualty ILS, and cyber insurance.

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.

The Bermuda Monetary Authority is proposing eight new banking models to modernize and diversify the island's financial sector, with a particular focus on serving digital asset businesses and expanding access to specialized wholesale and retail banking services. Will these reforms position Bermuda as a leader in offshore banking innovation while maintaining its reputation for robust regulation and financial stability?

Bermuda's Digital Asset Business Act framework offers DeFi platforms and DAOs a structured regulatory pathway that bridges decentralised governance with institutional-grade compliance. Through tiered licensing and foundation company structures, projects can evolve from testing to full authorisation while maintaining token-holder governance and meeting institutional investor requirements.

Bermuda's digital asset business sector stands at a pivotal moment, with the potential to mirror the island's historic success in captive insurance. Drawing parallels between the transformative Insurance Act of 1978 and the Digital Asset Business Act of 2018, this analysis explores how early regulatory clarity and consistent oversight could position Bermuda as a global leader in the convergence of traditional finance and blockchain technology.