Good science, smart capital: Bermuda’s formula for ILS growth

Insurance linked securities (ILS) conversations have evolved well beyond catastrophe bonds and capital efficiency; they now reach into the mechanics of risk itself — the physics, engineering and human behaviour that underpin the world’s biggest losses. In Bermuda, where science, finance and risk intersect, the guiding philosophy could be summed up in one line: “good decisions are based on good science”.

Speaking exclusively to Bermuda:Re+ILS on the ground, Hanni Ali (pictured), CEO of Radix ILS, in his capacity as a member of the ILS committee, said the goal for Convergence has always been to build an event where participants “really have the ability to learn something new.” The sessions are designed, he explained, to bridge the gap between technical understanding and industry application. “We always try to bring some science to bear on this,” he said, “because ultimately, we believe, as a group and as an industry, that good decisions are based on good science. That’s where we start.”

That foundation was visible in the opening sessions of Convergence 2025, which focus squarely on the science before drawing connections to market realities. As Ali put it, the process then becomes one of asking: “What industry insights do we need to fold into that science?” Because, he added, “ultimately, insurance is a cross between the hazard and the vulnerability.”

The conversation turned to wildfires, where those fundamentals of hazard and vulnerability play out visibly. Drawing on day one discussions, Ali pointed to the importance of defensible space — how the physical proximity of buildings can amplify risk — noting, “If you build them really close to each other, and one sets fire, the other one is much more likely to go. It’s not rocket science.”

That physical risk then ripples through the insurance system in financial terms. “You’ve got deductibles, limits, business interruption costs,” he said, “or in the case of wildfires, that basically boils down to additional living expenses — housing people in temporary accommodation because it’s going to take a good deal of time before their houses can be rebuilt.”

The agenda continues to broaden, assessing a wider ecosystem of risks shaping the market and touching on casualty and specialty lines, including cyber.

“These are all components of how we continue to ferment the growth of the ILS market and alternative capital,” he said, pointing to the role of innovation and analysis in maintaining momentum across Bermuda’s reinsurance sector.

That blend of science and market insight remains Bermuda’s hallmark — a place where data, engineering and capital continue to shape the next wave of insurance evolution.

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