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15 March 2024News

Lloyd’s and Bermuda are ‘intertwined’: Tiernan seeks greater collaboration

Once wary rivals, Lloyd's and Bermuda now regard themselves as complementary re/insurance markets which are intertwined in many ways. 

Now the leading global markets are moving from complementing each other to collaboration as they come together on innovation and education initiatives. 

That was the tone of comments by Lloyd’s chief of markets Patrick Tiernan at yesterday's Bermuda Risk summit. 

He said the initiatives - bringing a cohort of Lloyd's Lab to Bermuda in 2025 and making the Lloyd's Academy available in Bermuda - were part of a broader commitment to share risk expertise between the world’s major reinsurance hubs. 

He said Bermuda and Lloyd’s were intertwined, noting that nearly 50% of Lloyd’s syndicates have a presence in Bermuda and that Bermuda re/insurers were some of Lloyd’s most valuable counterparties, with one third ceded premiums going to Bermuda. He said many investors in Lloyd’s were also investors in Bermuda companies.  

He said Bermuda companies were often “lazily” described as competitors to Lloyd’s but he believed there was room for collaboration and that Lloyd’s and Bermuda could co-create structures that would solve problems for both markets. 

He also noted that Lloyd’s could learn from Bermuda, pointing out that it had moved to the principles-based regulatory structure used by the Bermuda Monetary Authority. 

The initial collaboration on innovation will support the launch of a Lloyd’s Lab reinsurance cohort that specifically utilises the expertise of the Bermuda market in the first half of 2025, Tiernan said. 

The Lloyd’s Lab programme will provide a 10-week fast tracked incubator to enable an environment where great ideas can develop into practical outcomes, with the support of industry experts. The programme sees experienced individuals and teams bring forward creative and entrepreneurial thinking, enabling the creation of ground-breaking solutions and advancements in insurance.

Another area of the collaboration is educating and inspiring future professionals in the industry, centred around training and improving access to both Lloyd’s, the Association of Bermuda Insurers and Reinsurers (ABIR), and the BMA’s resources.

As part of this, Lloyd’s Academy training programmes will be available to Bermuda market participants both in-person and virtual. In addition, Lloyd’s will partner with Bermuda-based experts to roll out a suite of Bermuda market courses and leverage the existing educational offerings of ABIR with Bermuda College. 

Vincent Tizzio, the chief executive officer of Bermuda-based AXIS Capital, which has one of the best performing Lloyd’s syndicates, said the two markets had different strengths. 

He noted AXIS had set up a new syndicate at Lloyd’s – syndicate 2050 which underwrites emerging energy technologies – had been carried out with strong support from Lloyd’s , while the company had also launched  new ventures in Bermuda, including Monarch Point Re and a 144a cyber catastrophe bond. 

Tizzio said ultimately both markets were “all about people”.  “We need rich, diverse talent complementary to both markets,” he said, adding that there were many capable people in both jurisdictions. 

Of the joint BMA-Lloyd’s initiatives, Craig Swan, chief executive officer, Bermuda Monetary Authority, said: “We are excited to collaborate with Lloyd’s in our shared commitment to enabling innovation and excellence in the insurance industry. By working together, we aim to create more robust and dynamic insurance markets that will continue to serve global communities.

“This partnership marks a significant milestone in our efforts to foster collaboration, enhance regulatory and market capabilities and deliver practical solutions that address evolving needs of people and markets. We look forward to a successful partnership that paves way for greater progress and success of both Lloyd’s and Bermuda markets regarding narrowing protection gaps.”

John Huff, President and CEO, Association of Bermuda Insurers said: “The symbiotic relationship between Lloyd’s and the Bermuda market has never been more important to tackle the risk challenges of economies around the world. 

“ABIR and its member companies are proud of their significant capacity and leadership within the Lloyd’s market and look forward to working together to strengthen market innovation and education of the next generation of talent.”  

Sheila Cameron, CEO, Lloyd’s Market Association, said: “The LMA is fully supportive of the joint initiative between the Lloyd’s and Bermuda market which ensures we share the knowledge and expertise needed to deliver the products and solutions to meet our members’ needs. Collaboration between brokers, insurers and reinsurers on both innovation and education will help us tackle the risks of the future together.”

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