BMA creates regulatory/supervisory team addressing climate change risk

Written by Adam Cadle

13/04/2021

The Bermuda Monetary Authority (BMA) is increasing its focus on climate change matters with the introduction of a regulatory and supervisory team specialising in the licensing
and supervision of innovative business model proposals to address climate change risk and the associated protection gap.

The team will also work with climate change risk solution service providers (to the financial
services sectors) wishing to participate in the Authority’s innovation hub. The BMA said it recognises that the challenges posed by climate change continue to exacerbate.

With respect to industry impact, while recent BMA and Prudential Regulation Authority stress testing suggested that Bermuda’s (re)insurers would remain resilient to a wide range of risk scenarios, the Authority’s data estimates that combined gross potential loss for
the Bermuda commercial (re)insurance market on major natural catastrophe perils is approximately $200bn.

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