BILTIR releases new report on Bermuda insurance industry

Trade association Bermuda International Long Term Insurers and Reinsurers (BILTIR) has released a report exploring the history and current state of the long-term insurance industry in Bermuda.

Titled Building for the Long Term: Examining the History, Future, and Importance of Bermuda’s Long-Term Insurance Market, the report is based on a study of 55 life and annuity (re)insurers who are BILTIR members and provides a detailed analysis of regulatory initiatives and investment capital trends in the Bermuda market. Key findings include:

• Closing the pension protection gap: Reporting BILTIR members1 made total benefit payments of $137 billion in the last five years.

• Emphasis on policyholder protection: Among reporting companies, assets held exceed liabilities by $231 billion. These assets – whether used to reinsure blocks of existing business, enable more direct writing, or finance growth – reflect a high level of diversification.

• Stable investment capital fuels industry ingenuity via strong returns: 92% of BILTIR’s members’ rated assets under management are investment-grade and 95% of their bonds, debentures, and structured assets are investment-grade. 77% of assets have additional protection in the form of secured trusts, fund with-held, or MODCO.

The report also details the regulatory environment that the Bermuda Monetary Authority (BMA) has created over the past 55 years to strengthen policyholder protections. Underpinned by a well-capitalised industry, Bermuda’s regulatory framework evolves with changing market conditions, making it reflective of the current economic reality and in turn providing a blueprint for dynamic control over an industry.

“As evidenced by this data, Bermuda’s insurers and reinsurers hold an important role in protecting policyholders. Strong, evolving regulation and stable capital investments create an environment for excellence within the industry,” said Suzanne Williams-Charles, chief executive of BILTIR. “Addressing the pension protection gap is a global issue and Bermuda is taking center stage as the location to support the changing industry. This jurisdiction stands as a best practice model for others.”

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