Bermuda life leaders welcome regulatory updates

Proposed improvements to the regulatory framework for life insurers in Bermuda won the backing of sector leaders at a panel discussion yesterday (March 8).

The Bermuda Risk Summit heard that the Bermuda Monetary Authority’s (BMA) consultation paper calls for “targeted enhancements” to the framework in response to worldwide factors that have impacted the sector.

Michelle Moloney, EVP chief risk officer at Pacific Life Reinsurance, said: “The enhancements will benefit Bermuda. Maintaining a strong regulatory regime is essential to us all.

“The entire industry has been getting more sophisticated on the assets and liability side. Policyholders benefit from us being more efficient but in turn regulations must evolve.”

The panel discussion, titled “Updates From the Life Sector” and moderated by Bermuda’s former finance minister Curtis Dickinson, took place at the Fairmont Hamilton Princess on the third and final day of the Summit.

Dickinson, executive adviser at Bermuda International Long Term Insurers and Reinsurers, was joined by Moloney; James Claxton, associate partner at EY; Martin Maringi, deputy director in the BMA’s supervision (insurance) department; and Mark Yu, head of enterprise capital strategy and New England Asset Management.

They discussed key developments in the life sector, including policyholder protection and the risk-based supervisory approach that incentivises and drives rigorous asset and liability management.

Maringi explained that the BMA’s consultation paper, published two weeks ago, intends to protect Bermuda’s “strong reputation as a credible and trusted financial services centre”.

Yu said: “We welcome this framework. It is robust and well thought through.”

Moloney highlighted risks facing the sector, including underfunded pensions and historic low interest rates.

She added: “Government debt is ballooning. We are not even sure they can support some of the social security that they have been promising.”