10 October 2019ILS

Convergence: ILS no longer a threat to traditional capital

ILS is no longer seen as a threat to traditional capital, according to Kathleen Faries, the chair of ILS Bermuda.

Speaking at Convergence 2019, Faries said the lines are blurring in the ILS market, with a converged version of ILS having emerged – a trend she said she hoped would continue.

Bermuda continues to lead the way in the evolution and development of the ILS market, as a record number of attendees at Convergence 2019 heard at its opening.

Re/insurance is the greatest contributor to Bermuda economy, said Andy Burrows, the CEO of the Bermuda Business Development Agency, contributing to the island’s ability to punch above its weight on the world economic stage.

ILS is a particularly important part of the business, with Bermuda the leading domicile for ILS, while also leading growth in this market, he said.

Minister of finance Curtis Dickinson noted that recent events demonstrated the potential destruction from natural catastrophes, stressing the role of Bermuda’s ILS market in providing vital coverage for the market. He said Bermuda’s government is committed to encouraging growth in this area.

Faries said location, stability and regulation contribute to make Bermuda the leading jurisdiction for ILS players. ILS capital continues to grow, as does the number of dedicated ILS managers on the Island, she added.

Burrows said it would be easy to take for granted what has been developed on the Island, despite a lot of work being put in to the ILS market.  Bermuda’s good regulation and government position it well in this business, he said, with both working hard to communicate with each other and to take advantage of opportunities.

Burrows also stressed the importance of having a presence on the island, with Bermuda home to some of the leading business minds in the market and some of the world’s biggest companies. The government of Bermuda leads the way in areas like digital assets, he said, with among the highest levels of compliance.