Bermuda’s convergence and insurance-linked securities (ILS) industry produced at least 400 jobs in the jurisdiction by the last quarter of 2015, according to the Bermuda Business Development Agency (BDA).
This figure represents a 30 percent increase over the previous year. The research report, ‘Leading the way: Bermuda’s ILS market 2016’ also found that the fast-growing industry sphere was accountable for over $100 million in payroll.
Industry workers represented nine percent of all people working in the island’s worldwide operating companies in 2015.
Jobs involved 209 people employed by 15 funds, paired with 188 jobs at 25 companies that supported the ILS industry directly, including all Big Four accounting firms and all top five insurance brokers.
The study concluded that the estimated total economic impact of $734 million from Bermuda-based insurance-linked funds.
“We commissioned this research to provide details on the economic impact of the ILS market on Bermuda—both actual jobs created and aggregate fiscal contribution,” said Ross Webber, chief executive officer (CEO) of the BDA.
“The results of the study are certainly positive, proving the convergence sector has quickly become a pivotal and multiplying contributor to Bermuda’s overall economic health. The study is not exhaustive, so data gleaned presents a picture of the minimum contribution.”
According to the report, Bermuda has the largest share of cat bond listings in the world, with over $20 billion in assets under management, or three-quarters of global capacity, confirming current statistics from the Bermuda Monetary Authority (BMA).
In 2009 there were no ILS domiciled in Bermuda. “That year, in a move exemplary of the collaboration between government, industry and regulator, Bermuda introduced legislation allowing the creation of Special Purpose Insurers—specifically designed to attract ILS and collateralised insurance companies to the island,” Webber said.
“Since then, Bermuda has become the market leader and the recognised hub for this sort of innovation and product development.”
Greg Wojciechowski, Bermuda Stock Exchange CEO and head of ILS Bermuda, added that: “Bermuda’s ILS sector has always been highly collaborative, bringing together our regulator with industry both here and overseas with a focus on making the jurisdiction a centre of excellence for creation of ILS structures and servicing and listing of transactions.
“This report crystallises the success of those efforts and illustrates Bermuda’s strengths, its innovative nature and importance to domestic and global clients."
Bermuda Business Development Agency, Bermuda, ILS, Insurance, Bermuda Monetary Authority, Bermuda Stock Exchange, Ross Webber,