Bermuda’s reinsurance market underpins global safety and soundness, ABIR panel hears
Bermuda’s role as a cornerstone of global reinsurance capacity and regulatory trust came into sharp focus during a panel entitled “Safety & Soundness: NAIC Qualified & Reciprocal Reinsurers Protecting Consumers”, held at the ABIR Risk Forum 2026, which took place in Bermuda this week.
Moderated by Jonathan Kent, deputy editor of The Royal Gazette, the session brought together senior industry and regulatory voices to explore how capital strength, expertise and regulatory cooperation underpin a resilient global insurance system.
Following an introduction by Antoinette Hurtado (pictured middle), Bermuda’s US Consul General, the panellists comprised Nicolas Papadopoulo (pictured left), CEO, Arch Capital Global, and Scott White (pictured right), President, NAIC, and Commissioner of the Virginia State Corporation Commission’s Bureau of Insurance.
A central theme throughout the discussion was the importance of capital as the foundation of safety and soundness. Panellists emphasised that the ability of insurers and reinsurers to meet claims, particularly in times of systemic stress, depends on the availability of well-managed, globally mobile capital. In this context, Bermuda’s market continues to play a disproportionately large role in supporting international insurance systems, particularly in the US.
The panel highlighted that a significant share of certified and reciprocal reinsurers operating within the US framework are based in Bermuda, underlining the island’s importance in providing capacity and diversification benefits to cedants. These regulatory designations, built on mutual recognition and high supervisory standards, enable cross-border reinsurance flows without the need for excessive collateral, helping to lower costs and improve efficiency in global risk transfer.
Discussion also focused on the evolution of regulatory frameworks, with an increasing emphasis on outcomes-based supervision. Rather than strict rule-by-rule alignment, frameworks such as the NAIC’s qualified and reciprocal jurisdiction regimes assess whether jurisdictions deliver equivalent levels of policyholder protection and financial stability in practice. This approach has helped foster trust between regulators and enabled more seamless global operations for reinsurers.
At the same time, the panel reinforced that consumer protection remains the ultimate objective of regulation. Behind every policy and claim lies an individual or business relying on insurance as a financial safety net. Ensuring that claims are paid, disputes are handled fairly and markets remain stable is central to maintaining confidence in the system.
From a market perspective, Bermuda’s historic ability to respond rapidly to dislocation events was cited as a defining strength. The jurisdiction has repeatedly demonstrated its capacity to attract capital and deploy it quickly following major shocks - from liability crises in the 1980s to the aftermath of Hurricane Andrew and the events of 9/11. This combination of speed, expertise and regulatory credibility continues to position Bermuda as a preferred destination for capital in times of need.
However, the discussion also acknowledged emerging challenges that could shape the next phase of the market. Rising costs of doing business, including the impact of global minimum tax regimes, were identified as potential headwinds. Maintaining competitiveness while preserving high regulatory standards will be critical to ensuring Bermuda retains its leading role.
Another key issue was the global protection gap, particularly in areas such as natural catastrophe, cyber risk and retirement savings. Increasing frequency and severity of loss events, driven by climate change, inflation and geopolitical volatility, are putting pressure on insurers’ balance sheets and, in turn, on affordability and availability of coverage. Bermuda’s contribution of additional capacity, alongside innovative risk transfer solutions such as insurance-linked securities (ILS), was seen as essential to addressing these gaps.
The panel also explored the growing complexity of risk, including cyber threats, artificial intelligence and evolving liability trends. These risks are more difficult to model and manage, requiring both regulatory adaptation and enhanced technical expertise. Increased use of alternative capital and structured solutions was highlighted as one way the market is responding, although it brings additional oversight challenges.
In parallel, the importance of risk mitigation and resilience measures was underscored. Initiatives such as strengthened building standards and preventative measures can reduce loss severity and improve insurability over time. However, scaling these efforts remains a significant challenge, requiring collaboration between governments, insurers and other stakeholders.
Overall, the session reinforced that safety and soundness are not static achievements but ongoing processes, requiring continuous cooperation between regulators, industry participants and capital providers. Bermuda’s unique combination of regulatory credibility, market expertise and access to capital positions it as a central player in that ecosystem.
The Association of Bermuda Insurers and Reinsurers (ABIR) represents Bermuda’s major property and casualty insurers and reinsurers. The event was supported by ABIR member companies and event partners KBRA, Bermuda Business Development Agency (BDA), and Deloitte, along with education partner The Institutes Knowledge Group.
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