Playing a role in closing the retirement protection gap

Bermuda is well positioned to help to narrow the global pension protection gap, says BILTIR chief executive officer Suzanne Williams-Charles.

For more than 40 years, Bermuda has proven to be a domicile that provides stability for growth and facilitates innovation in the global reinsurance industry.

Bermuda has played a crucial role in helping narrow the retirement protection gap – an issue measured in the trillions of dollars. As life expectancy increases, so does the demand for robust financial solutions to sustain longer retirements. Workers today are no longer relying solely on traditional retirement plans; instead, they are seeking additional financial products to ensure long-term security. In response, the life and annuity reinsurance sector is experiencing unprecedented demand, requiring innovative solutions and strategic investments to meet evolving needs.

Bermuda is fostering innovation

At the core of this transformation is Bermuda’s regulatory environment. Without a well-regulated and progressive reinsurance sector, the industry would struggle to support the growing number of policies being issued globally. Bermuda fills this role by providing a transparent, stable and well-regulated jurisdiction for insurers and reinsurers. Bermuda enables companies to develop progressive investment strategies, optimise risk management and deploy capital in ways that benefit both policyholders and the broader financial ecosystem.

Bermuda’s regulatory framework, championed by the Bermuda Monetary Authority (BMA), has created an environment where reinsurance companies can operate with confidence. The transparency and accountability embedded in this framework empowers companies to attract investment and develop innovative solutions. The BMA’s approach allows reinsurance providers to enter private markets, access capital and optimise operations in a progressive low-risk fashion that benefits current and future policyholders. Data from my organisation, the Bermuda International Long-Term Insurers and Reinsurers Association (BILTIR), exemplifies the strength of Bermuda’s ecosystem, showing our members have collectively paid out $137 billion in benefits over the past five years, with approximately 70% of licensed members underwriting guaranteed products.

BILTIR is guiding the reinsurance sector

As an industry leader, BILTIR plays a pivotal role in this evolving landscape. Representing more than 64 insurers and reinsurers worldwide, BILTIR supports its members who are dedicated to tackling the challenges of the retirement protection gap. By fostering communication among its members and the BMA, BILTIR helps ensure that regulatory requirements remain stringent while still allowing room for innovation. This balance is critical, as it ensures Bermuda remains a hub for responsible, forward-thinking reinsurance solutions. Bermuda has demonstrated for decades its ability to identify the needs of the market in terms of innovation and the agility to adapt its regulatory and supervisory framework to support and encourage innovation, while never losing sight of its responsibility to protect policyholders.

BILTIR’s commitment to collaboration extends beyond regulatory discussions. By bringing together key stakeholders, including insurers, reinsurers, policymakers and regulatory bodies, BILTIR facilitates the exchange of ideas that help shape and drive meaningful industry advancements. It also seeks to foster an environment where reinsurance companies can thrive while prioritising risk prevention and financial security for policyholders.

Bermuda’s influence in the global reinsurance market is undeniable. The jurisdiction’s historic ability to blend stringent regulation with innovation has made it a beacon of reliability in an uncertain world. As the retirement landscape continues to shift, Bermuda’s life and annuity reinsurance sector will remain at the forefront of efforts to provide financial stability for future generations through risk management, capital relief and global risk diversification. Through the combined efforts of regulators, insurers and industry leaders such as BILTIR, Bermuda will continue to play a leading role in closing the retirement protection gap, to help establish a secure and prosperous future for retirees worldwide.

BILTIR’s social impact

BILTIR is committed to investing in Bermuda’s local workforce to deepen the local talent pool. Although our primary focus is to act as an advocate for Bermuda’s life and annuity insurers and reinsurers, at least 20% of our time is spent on educational programmes aimed at sparking the interest of Bermudians in the long-term insurance space and providing a mechanism for them to be educated about the sector. Our organisation offers an annual scholarship, supports a summer intern programme, various local career fairs, high school lunch-and-learn sessions and maths tutoring at local high schools.

BILTIR’s intern programme is coming into its eighth year and university students in at least their second year studying business-related fields are eligible for an internship with a BILTIR member company. Many students secure full-time jobs with our member companies post-graduation. We also offer a two-year scholarship of $30,000 to a student interested in pursuing a career in the long-term insurance space.

Bermuda’s combination of fit-for-purpose regulations, strong capital regime and a deep pool of subject matter expertise makes us well positioned to provide effective solutions to narrow the pension protection gap.

Suzanne Williams-Charles is chief executive officer of Bermuda International Long-Term Insurers and Reinsurers (BILTIR). To find out more about BILTIR, visit biltir.bm.

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