Members of the Association of Bermuda Insurers and Reinsurers (ABIR) recorded high levels of contract certainty in both insurance and reinsurance, with certainty topping 97 percent for 2013.
ABIR members achieved 99 percent contract certainty in insurance and 97.7 percent in reinsurance, comfortably beating the 90 percent baseline set out by ABIR’s Contract Certainty Code of Practice.
Levels for the year beat the six-year average since monitoring began in 2008, which has averaged 96.1 percent for insurance and 95.7 percent for reinsurance.
Commenting on the findings, Leila Madeiros, senior vice president and deputy director of ABIR said: “We have witnessed high levels of contract certainty compliance since implementing voluntary guidelines in 2008. This demonstrates the ongoing commitment of ABIR’s global insurers and reinsurers to high standards and places the Bermuda market at the forefront of global contract certainty practice.”
The ABIR Contract Certainty Code of Practice defines contract certainty as “achieved by the full and final agreement of all terms and conditions between the (re)insurer and (re)insured at the time of binding. This will be evidenced by a binder, cover note or similar which reflects all terms and conditions and which is agreed by the (re)insurer. The final committed capacity must be clearly identified.”
ABIR, contract certainty, Bermuda