The Bermuda Monetary Authority (BMA) has released its first report on the resilience of Bermuda’s reinsurance industry to major, but improbable, catastrophic events.
The report, titled ‘Catastrophe Risk in Bermuda’, gives a high level overview of the jurisdiction’s catastrophe reinsurance risk stress testing and modelling practices and is available on the BMA website.
The BMA said that the report also underscores the reputation of Bermudian re/insurers of being well-capitalised, innovative and technically proficient.
“With such a relatively high concentration of catastrophe risk, a broad understanding of the potential adverse impacts, including identification of any concentration of risks and catastrophe modeling practices in Bermuda is central to the Authority’s supervisory framework,” said Craig Swan, managing director, supervision, at the BMA.
“The Authority plays a significant role as a leader in the regulation of the global catastrophe market and in an effort to continue to reemphasise our commitment to high standards of transparency, the Authority has produced this Report.”
The BMA stated that it intends to produce the Catastrophe Risk in Bermuda Report annually.