Bermuda’s re/insurance regulatory sandbox has been so successful that it is being adapted for climate solutions and alternative energy, according to Bermuda’s Deputy Premier.

In a video interview with Bermuda:Re+ILS, The Hon Walter Roban, who is also the home affairs minister, says the sandbox concept is already working for the Island.

He reveals that the Bermuda government is also considering issuing a “blue bond” to support its blue economy initiatives which are aimed at trying to sustainably develop the sea around Bermuda. A blue bond could raise the capital that would help to fund an alternative and diversified blue economy in Bermuda’s 200-plus-nautical mile exclusive economic zone.

“The local insurance and reinsurance industry that is based here but operates globally has been a good environment for innovation and ideas,” Roban says. “We learned about using a regulatory sandbox from that industry because they use it for their own products to test them before they go to market.

“We believe that a blue bond is an appropriate instrument to look at.”

“Once they have satisfied the appropriate regulatory requirements, that company can put it onto the market.

“We thought that was a good idea for energy, because even though we are embracing the obvious proven solutions that are out there for the energy transition, we as a small island need to be able to find solutions that fit our attributes and our interests.

“The regulatory sandbox invites innovative energy solutions that can be tested subject to the appropriate regulatory requirements in Bermuda, and perhaps can then be offered to other parts of the world.”

Roban says the Bermuda government is working on ways to fund blue economy initiatives. “We believe that a blue bond is an appropriate instrument to look at,” he says.