20 March 2014News

Bermuda lags behind Europe in ERM disclosure

A recent report by Guy Carpenter has found that while the global re/insurance industry is strengthening its disclosure of ERM practice and methodology, Bermuda continues to lag behind Europe in terms of transparency.

The global re/insurance industry has introduced “more robust enterprise-wide risk management”, according to the report, with regulators and rating agencies placing increasing emphasis on ERM-related disciplines in capital adequacy dialogues.

Guy Carpenter found that since its last study conducted in 2009, risk reporting has become increasingly homogenous and focused on satisfying the demands of regulators and rating agencies. It found that there was a general trend towards greater disclosure of methodology and risk tolerance.

Bermuda has made significant strides in strengthening its ERM disclosure since 2009, but continues to lag behind Europe in terms of transparency. However, Guy Carpenter highlighted Solvency II as a leading driver of ERM and Bermuda equivalency has helped to dramatically increase ERM disclosure on the Island and looks set to provide still further impetus.