From risk to resilience: Bermuda's eyes closing protection gaps
Fast evolution triggers market reshape, diversifying approaches and strategy.
The rising frequency and severity of natural catastrophe-related events are challenging reinsurers’ assumptions, with protection gaps still large in many areas. This fast-evolving risk landscape is causing a market reshape, diversifying approaches and strategies.
However, the Bermuda insurance market, with its significant resilience, stands strong against potential adverse impacts, as evidenced in the 2023 Bermuda Insurance Property and Casualty Market Catastrophe Risk and Stress Testing Analysis results.
In ‘Bridging protection gaps: natural catastrophes and retirement’, featured in Bermuda Risk Review 2025, Craig Swan, Chief Executive Officer of The Bermuda Monetary Authority (BMA), underscores the pivotal role of the Authority in bolstering Bermuda’s re/insurance market.
He highlights the innovative solutions the BMA is implementing, which have significantly contributed to the market's strength. These strategic regulatory frameworks continue to support policyholders, as evidenced by Bermuda Insurers paying nearly $1 trillion in claims to policyholders between 2016 and 2023.
Swan emphasised the importance of integrating new ideas and technologies to reduce protection gaps, including the development of innovative coverage, particularly for climate and retirement risk. Continuing, Swan reveals key statistical analysis demonstrating the strength of Bermuda’s commercial markets.
Bermuda does not fall short when it comes to ILS either, particularly with the uptake of new risk coverage avenues, including the staggering investments made in Cyber Bonds, with 2023 seeing $670 million in cyber-specific ILS Bermuda-based vehicles issued. This resilience to the changing landscape of risk saw Bermuda exceed 90% of the global share of ILS in 2024.
The captive market remains strong, with its mature standing offering solutions that might not otherwise exist, evidenced by the gross written premiums and staggering assets reported in the 2023 BMA Captive report, detailed by Swan.
Swan attributes the continued success of the Bermuda market to several factors, including the BMA’s regulatory sandbox and innovation hub, which has resulted in the licensing of 12 insurance companies. He details the breakthrough business model this platform has provided, touching on the aspects shaping a progressive future for addressing protection gaps.
Read the full article in Bermuda Risk Review 2025, pp.8-10.
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