BAHAMAS Law and Practice Contributed by: Dwayne Whylly, Kamala Richardson-Deal and Nastassia Rigby-Rodriguez, Glinton Sweeting O’Brien
7.4 Regulation of Programmers and Programming
The IA does not permit an insurer to be registered to conduct long-term insurance business and general insurance business at the same time.
The relevant laws and regulations do not currently address this activity. In the absence of express provi - sions, it is prudent to obtain a letter of no objections from the regulator for the provision of such services.
9. Regtech 9.1 Regulation of Regtech Providers
8. Insurtech 8.1 Underwriting Processes
Persons who provide regtech to digital asset busi - nesses are not subject to regulation under the DARE Act 2024. 9.2 Contractual Terms to Ensure Performance and Accuracy In light of the response at 9.1 Regulation of Regtech Providers , the authors are not aware of any such terms. 10. Blockchain 10.1 Use of Blockchain in the Financial Services Industry A number of financial institutions in The Bahamas, which previously operated in the traditional finance space, have expanded the scope of their opera - tions to include digital asset business. This includes the incorporation of digital asset exchange divisions within existing business models, as well as expanding operations to provide custody of digital assets. 10.2 Local Regulators’ Approach to Blockchain The promulgation of blockchain directly led to the enactment of the DARE Act 2024. Blockchain is expected to play an integral part of the digital auton - omous organisation (DAO) regime that The Bahamas is looking to enact. The Commission is continuing to develop legislation in this space and has plans to amend the DARE Act 2024 and issue supplementary material in the form of regulations, rules or guidance notes in the near future. 10.3 Classification of Blockchain Assets Not all blockchain assets are considered regulated financial instruments under the DARE Act 2024. The DARE Act 2024 broadly regulates digital assets, but their regulatory treatment depends on their classifi -
The Insurance Commission of The Bahamas is respon - sible for the regulation of insurance and insurance agencies in The Bahamas. Regulations with respect to insurtech have not been implemented, however, due to the growing market and rapid changes, the Insur - ance Commission has launched a training programme aimed at educating and equipping industry profes - sional with the tools in the market as the insurtech industry grows. 8.2 Treatment of Different Types of Insurance Industry participants are regulated by the Insurance Commission and must be registered and hold a val - id licence to operate as an insurance agency in The Bahamas. The Insurance Act, 2005 (IA) provides for the registration of insurers seeking to conduct the fol - lowing classes of insurance business: • general insurance business, ie, accident insurance, liability insurance business, marine, aviation and transport insurance business, motor vehicle insur - ance business, pecuniary insurance business and property insurance business; • long-term insurance business, ie, industrial life insurance business, ordinary life insurance busi - ness, variable life insurance business, sickness or health insurance business (including group health), pension fund management, annuities and variable annuities business; and • all other classes of insurance not falling under general insurance business or long-term insur - ance business, including but not limited to medical service plans, hospital service plans, health main - tenance organisations, prepaid limited health care service plans, dental, optometry and other similar health service plans.
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