The insurance-linked securities (ILS) market on Bermuda is playing an increasingly important role on the Island, David Burt, Premier of Bermuda, told delegates at the beginning of the second and final day of the Convergence 2017 conference, organised by ILS Bermuda.
Premier Burt started his opening remarks by pointing out that as the conference met and as Bermudians went about their day to day business, there was a huge amount of rebuilding work going on in the Caribbean as the region started to recover from the hurricanes that had hit the area.
“Yet in the midst of this there is still the need to celebrate and recognise the successes of what we are doing here in Bermuda,” he said. “The importance of the insurance-linked securities business in Bermuda and our catastrophe reinsurance platform has truly been affirmed by these devastating events, and I’m pleased that the growth in this ILS market meeting mirrors the growth in the ILS industry.”
The Premier told delegates that the significance of industries like theirs, at the cutting edge of risk financing for some of the most destructive events could not be understated. “If we look to the US and look at what is happening in Northern California insurers and reinsurers could pay out several billion dollars to cover claims from the most unfortunate fires. Already several thousand residential and commercial properties have been destroyed as the fires spread across some nine million acres.”
According to Premier Burt that ongoing tragedy, along with the recent earthquake in Mexico, as well as Hurricanes Harvey, Irma and Maria, has made for a trying time for many in those countries.
He pointed out that in recent years storms in Bermuda and around the globe seem to be becoming stronger and more powerful.
“These events can accelerate capital market incursions into insurance market share held by traditional insurers and reinsurers, especially with regard to the catastrophe business, as ILS increasingly appears to provide capital efficiencies.
”No matter which way the wind blows, the Bermuda market has demonstrated that it will be able to provide, whatever the platform is, and innovate for the future. With local companies at the front of the pack there is an ushering in of new and innovative structures.”
ILS Bermuda, Convergence 2017 conference, David Burt, Premier of Bermuda