BMA welcomes three more SPIs

The BMA welcomed a further three special purpose insurers (SPIs) in October, bringing the total number of SPIs formed this year to 32.

Figures from the BMA provide some indication of the levels of alternative capital flowing into the cat market, with reinsurers establishing vehicles on the Island to cope with rising demand among institutional investors for cat risk.

SPIs are being used as the vehicle to fulfil this demand and it is likely that more will follow between now and year-end as capacity has tended to ramp up prior to the January 1 renewals.