Re/insurance regulators must address the mood of uncertainty hanging over the industry regarding the future of regulation, according to Jeremy Cox, executive chair of Bermuda Monetary Authority.
Speaking at the recent PwC Insurance Summit in Bermuda, Cox said that even a regulator can understand why uncertainty poses a challenge. But he argued business in Bermuda had it better than peers operating in other jurisdictions.
“In this respect, perhaps more so than in any other, insurance supervision in Bermuda is an exemplary example of transparent collaboration,” Cox said.
In the year marking the 50th anniversary of the creation of the BMA, he added: “Over the years we’ve developed an enabling consultative culture. This empowers both the regulator and the regulated. It underpins our dialogue and has nurtured a strong working relationship with the financial service industry.”
Cox argued this relationship differentiates Bermuda from other insurance jurisdictions, with businesses in Bermuda able to operate with a relatively high degree of certainty.
The BMA’s annual business plan, consultation papers, market updates and market interactions with the industry are all designed to create “an ideal forum in which the BMA can exchange information with the industry and gauge market sentiment,” he added.
Cox conceded the industry is concerned about the cost of supervisory change, especially in an island jurisdiction like Bermuda, which experience higher levels of public scrutiny and debate than onshore centres typically do. But he argued costs always tend to rise over time, especially when driven by increases in demand.
Jeremy Cox, Bermuda Monetary Authority