Bermuda has a unique role to play in bringing ILS into the reinsurance market according to the welcome speeches at the ILS Bermuda Convergence 2014 conference.
This is because it is such an important reinsurance hub, with a supportive regulatory environment and superior expertise.
Greg Wojciechowski, president and chief executive officer at Bermuda Stock Exchange, said: “In Bermuda we have the depth knowledge of the business, and we support companies and stand shoulder to shoulder with them in times of need. We understand our clients’ risks and need and we have entrepreneurial drive.
“Our innovative spirit has driven the growth of Bermuda as a centre of excellence for risk transfer. Bermuda’s public and private sectors work very well together; our collaborative approach underpins our ability to bring solutions to the market quickly.”
Premier of Bermuda the Rt Hon Michael Dunkley, JP, MP, added that the conference comes at a very historic time in the financial service industry, when investment is entering the reinsurance base and delivering new opportunities. “ILS are challenging the traditional catastrophe reinsurance market in which Bermuda has been a major player since the late 90s,” he said.
“The BMA has licensed 125 special purpose insurers since 2012 and as capital markets and the insurance markets continue to converge, the rapid growth in ILS can be seen as a complement building on the success Bermuda has already built.”
He said that today insurers from many countries seek reinsurance from Bermudian companies and many believe the burgeoning ILS market will continue to evolve.
He added that today Bermuda is the leading domicile for insurance securitisation activity – a fact that he attributed to several unique factors including Bermuda’s approach to regulation.
Ross Webber, CEO of the Bermuda Business Development Agency, said that Bermuda is characterised by preparation, innovation, determination, collaboration and resilience.
“We worked out a while ago that it is key to ensure the clients get what they want and need,” he said. “In order to do that we need their constant feedback, guidance and critique. We recognise that sometimes that critique can be brutal but we need that candour to ensure we continue to ensure we provide the services and environment to facilitate business.
“An example of this synergy is the way Bermuda has affected the regulatory changes that have helped to bring many of you here today. We are determined not to get complacent. We value your business, your presence, your feedback and your friendship.”
ILS, Bermuda, Bermuda Convergence 2014, Greg Wojcichowski, Michael Dunkley, Ross Webber