1 November 2010Re/insurance

Bermuda: set to remain a leading jurisdiction

David Brown, chief executive officer of Flagstone Re: “Bermuda continues to enjoy a critical mass of capital and brokers that sets it apart from the competition.”

Brad Kading, president of the Association of Bermuda Insurers and Reinsurers: “Bermuda is more stable than EU jurisdictions and is ahead of most of the US in terms of regulation, with the BMA working directly with the government to create a conducive regulatory environment. While some players were spooked in recent years, they have all left their offi ces and staff in Bermuda. The Island’s speed to market remains a continuing key to Bermuda’s success.”

John Berger, chief executive officer of Alterra Re: “It does not matter where your holding company is, it is where your people are, and Bermuda will remain the place to write reinsurance business.”

Konrad Rentrup, president and chief executive officer of Hannover Re (Bermuda): “People have said that it’s going down, but it gets stronger and stronger after every crisis, and I think Bermuda will be a signifi cant market for years to come.”

Michael Morrissey, president and chief executive officer of the International Insurance Society: “I think Asia will present challenges to Bermuda’s place in reinsurance over the coming decade. Already China Re is ranked number 11 in the world by reinsurance premiums, and Korea Re is number 12. Singapore is also growing very rapidly as a reinsurance centre. The rapidly growing primary insurers in this part of the world want to do part of their business with the emerging regional powerhouses. This will present a challenge for many in the Bermuda market and a great opportunity for a few.”

Peter Mills, senior vice president, specialty and casualty lines, at Tokio Millenium Re: “There is no reason why Bermuda will not remain a key centre. Only a signifi cant change to the tax or political environment is likely to alter this situation.”

Adel Chebbi, director general of Pro-Assur: “Bermuda is, and will remain, a well-known and respected market leader. I don’t see that changing any time soon.”

Alain Buerrier, managing director of ABAS Conseil: “Bermuda was the fi rst and will remain the last.”

Stephen Catlin, chief executive of Catlin: “The BMA has really got its act together and moved forward on equivalence, and any concern [regarding equivalence] seems to have dissipated.”

Manu Kumar, chief executive officer of MNK Re: “There are a lot of positive things happening there, and where developments do emerge, Bermuda is ready and able to change faster than its competition.”

Henry Keeling, president and chief executive offi cer, international operations, at Guy Carpenter & Company Ltd: “Bermuda’s future viability as a reinsurance jurisdiction is very positive, but its relative position will depend on many factors, only some of which are within Bermuda’s control. Those within Bermuda’s control include several conundrums: balancing a strong and internationally compliant regulatory regime, while continuing to make Bermuda attractive and accessible to new capital; balancing short-term social pressures against providing sound longterm prospects for ex-patriot employees; and potentially realising Bermuda’s own political ambitions, while still encouraging a stable commercial environment for the international financial sector. Externally, Bermuda competes with other jurisdictions that will continue to offer attractive alternatives in an increasingly global and homogenised regulatory environment—the simple truth is that capital will flow to the place where returns look most attractive, for a myriad of reasons. Ten years ago, Bermuda was unparalleled in the reinsurance industry for its attractiveness to new capital—we shall have to see whether that remains the case.”

Paul Markey, chairman of Aon Benfield: “Bermuda continues to remain front and centre of the global reinsurance industry.”