BMA fines Allianz Life Bermuda $1.7m
Bermuda re/insurers paid out $209.6 billion to United States policyholders and cedants for large catastrophes, P&C losses and life insurance claims from 2016 to 2020, according to new figures from the Bermuda Monetary Authority (BMA).
Its survey collecting commercial market claims data confirms that the US remains by far the biggest market for Bermuda. The sum paid in the last five years surpasses the $208.7bn its previous survey found was paid out from 1997 to 2016. In total, the island’s (re)insurers have paid over $400bn to US policyholders and cedants over the last quarter of a century.
The survey shows a significant increase in annual payments to those in the US – more than doubling in five years from $24.4bn in 2016 to $58.8bn in 2020. Property and casualty insurance losses account for most of the total since 2016, with claims of $120bn paid, while life insurance claims accounted for $89.6 billion.
Gerald Gakundi, director of insurance supervision at the BMA, said the level of payments reflected the “tremendous growth” of the Bermuda market.
“This growth is spurred, in part, by the ability of Bermuda to attract a deep pool of global talent that drives product innovation and supply of risk capital capacity. Bermuda remains well positioned, and the survey results show that the BMA’s regulatory framework promotes sustainable business models that are resilient and capable of staving off the evolving risks, including the economic impact on US communities posed by climate change and other emerging risks,” he said.
“The ability of US re/insurers to cede risk to Bermuda enables diversification of risk globally, making the cost of buying insurance—particularly catastrophe, property and casualty insurance—more affordable to customers living in US danger zones and significantly lowering the insurance protection gap.”
Bermuda Monetary Authority, Pay Outs, Catastrophe, P&C, Life Insurance, Insurance, Reinsurance, Gerald Gakundi, Bermuda, North America