Monte Carlo: Bermuda’s role emphasised at conference
Bermuda’s role as an innovative insurance hub has been reinforced by the need to address issues like climate change and digital transformation which were highlighted at this week’s Rendez-Vous de Septembre in Monte Carlo.
That was the view of PwC Bermuda insurance partner Matt Britten, who also highlighted the role Bermuda had played in finding solutions to trapped capital in the insurance linked securities sector as well as increased interest in ILS casualty vehicles.
“Our participation in the Rendez-Vous de Septembre is a crucial opportunity to engage with global leaders on the evolving landscape of the reinsurance industry,” said Britten. “As we navigate an era marked by increasing climate-related risks and a heightened focus on digital transformation, it’s clear that innovation and resilience are more critical than ever.
“The discussions in Monte Carlo around harnessing advanced analytics and artificial intelligence to better predict and mitigate emerging risks have been particularly insightful, and further reinforce Bermuda’s pivotal role as a hub for addressing these global challenges and driving the future of reinsurance.”
Among the events organised by PwC at Rendez-Vous was its annual Insurance Legacy Market Update and Deals Outlook event where the PwC team provided an overview of deal activity and perspectives on the outlook for the sector.
Despite a turbulent 12 months, it said recent deal activity suggested the market for legacy transactions remains strong.
“New PwC analysis shows the North American market in particular has bounced back after a quiet 2023, in line with predictions in PwC’s March 2024 Global Run-Off Survey, a statement said. “The 13 North American deals involving over $3bn of liabilities completed in the first eight months of 2024 already exceed the total number of deals announced in 2023.”
Britten added: “During the year we have seen a couple of legacy deals executed with ILS players providing a solution to trapped capital.
“At the same time the Bermuda market has also seen an increased level of activity and interest in ILS casualty space, which I believe provides legacy acquirers with the potential opportunity to provide solutions – upfront solutions would probably be of most interest, to help support the development and growth of this ILS casualty space.”
Other events hosted by PwC included the PwC Executive Breakfast at the Hermitage Hotel where John Neal, CEO of Lloyd's, was the keynote speaker.
PwC also hosted a session this year on AI, and its potential impact on reinsurers. PwC research finds that 70% of reinsurers’ CEOs believe that AI is going to fundamentally transform their business.
PwC AI specialists outlined four key areas of opportunity enabled by AI that reinsurance market participants can exploit to transform operations: Data Acquisition, connecting across the Value Chain, Optimising and Automating Processes and Decisions, and Driving Insight and Assisted Decision Making.
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