29 January 2015ILS

Bermuda to fight for ILS title

Bermuda is ready to fight to retain its top position for the creation, listing and servicing of insurance-linked securities (ILS) in 2015.

In 2014, Bermuda was the domicile of choice for 57 percent of ILS and Bermuda Stock Exchange (BSX) president and chief executive officer, Greg Wojciechowski, believes Bermuda can retain the title.

He said that Bermuda must continue to innovate to remain ahead of the curve and retain its position as the premier ILS domicile as other jurisdictions realise that Bermuda has had such a head start with its existing infrastructure, expertise and experience.

Bermuda has been the domicile of choice for 57 percent of ILS during 2014 and has grown to be the leading global domicile for ILS with nearly $16 billion listed on the BSX at the end of 2014. The BSX saw a 53 percent increase in its ILS listings from 77 in 2013 to 118 in 2014.

With the value of ILS reaching record levels in 2014, Wojciechowski said a number of other jurisdictions are trying to win more market share.

Bermuda is facing strong competition from newcomers such as Malta, Gibraltar and Puerto Rico who are targeting ILS, as well as from the more established players such as the Cayman Islands, Guernsey and Dublin.

“Bermuda has proven time and again to be an innovative environment that encourages the growth of all forms of ILS – from catastrophe bonds to sidecars and collateralised reinsurance vehicles,” said Wojciechowski. “Bermuda has nimbly responded to changes in the industry to offer its global clientele modern and efficient solutions for their commercial needs.”

“The jurisdiction has positioned itself at the forefront of the global development of the ILS asset class and the outstanding amount of ILS issued in Bermuda represents 57 percent of the worldwide stock of ILS,” he added.