Bermuda’s re/insurance industry’s resilience in light of COVID-19 rests on the backdrop of recent developments solidifying the jurisdiction’s position as a world leading re/insurance hub. In late 2019, the National Association of Insurance Commissioners endorsed Bermuda with its hard earned Reciprocal Jurisdiction Status. This distinction, giving Bermuda’s global re/insurance market a competitive edge against other international markets, was highly celebrated. Earlier this year, Bermuda was recognised by the Caribbean Financial Action Task Force as a global leader in the fight against financial crime. Shortly after, the Economic and Financial Affairs Council announced that Bermuda has moved to the “whitelist” following efforts to enhance its regulatory framework and compliance with the EU’s tax governance principles. Each of these endorsements serve as a testament to Bermuda’s place at the forefront of the global re/insurance market.

In addition to these exciting achievements, Bermuda’s commitment to providing innovative solutions in the dynamic insurance marketplace was recently reconfirmed. In 2019, amendments to Bermuda’s Insurance Act introduced two new classes of Limited Purpose Insurers: a fully collateralised reinsurer class (Collateralised Insurers) and an innovation class (Class IIGB), in addition to a new category of insurance intermediary. The amendments were made with a view to facilitating innovation and growth, and cement Bermuda’s position as a world-leading re/insurance market. The Bermuda Monetary Authority (BMA) illustrated its commitment to promote innovation in the insurance industry by launching the Insurance Regulatory Sandbox (Sandbox) targeted at insurance technology companies looking to test financial technology to a limited number of clients, for a limited time period, in a controlled environment.

Appleby’s specialist Insurance & Reinsurance team have developed strong partnerships with re/insurance companies seeking commercially focused advice. Our team regularly advises on the establishment, regulatory compliance and business operations of all forms of insurance vehicles. Our expertise includes advising Special Purpose Insurers, formed as issue vehicles for Insurance-Linked Securities, including collateralised reinsurance and industry loss warranties. Our lawyers have extensive first-hand experience in a wide array of insurance related matters, including mergers and acquisitions, capital raising and alternative risk transfer structures.

Relying on our team’s vast experience and knowledge base, Appleby remains heavily involved in market activity, advising clients on unique and significant matters. Our lawyers have been at the forefront of the introduction of the new Collateralised Insurer class, acting as counsel on one of the first transactions involving this new vehicle. We recently acted as Bermuda counsel to a leading US-focused retirement, life insurance and reinsurance company, with its successful and exciting launch of a co-investment vehicle for both reinsurance of life & annuity blocks and reinsurance of pension risk transfer transactions. Our team is thrilled to be working with innovative insurers who provide bespoke insurance solutions to emerging business sectors, such as digital asset (cryptocurrency) enterprises and cannabis and hemp related businesses. In a first of its kind transaction, our team acted as Bermuda counsel to the first company to be licensed to operate in the Sandbox on completion of a parametric cyber risk instrument trade. In the M&A space, Appleby recently advised on a transaction involving an important life reinsurance structure, helping to grow the life market in Bermuda. These deals represent a brief cross-section of Appleby’s capabilities and capacity to advise clients in the dynamic and ever-changing global re/insurance industry.

Appleby is poised to continue providing our clients with quality advice and services during this difficult time, after seamlessly transitioning to our remote working environment. For information on temporary regulatory measures in place in Bermuda that may affect “business as usual” processes, please click here.

Share
Twitter LinkedIn Email Save as PDF
More News
23 Oct 2020 | News

Offshore Business Update

This is an update for our clients on how the authorities in our core jurisdictions are responding to...

15 Oct 2020 | News

Three Bermudians join Appleby’s 2-year legal trainee programme

Appleby would like to welcome Arielle DeSilva, Zantae Dill and Kaisha Wilson to the Appleby legal tr...

14 Oct 2020 | News

Sally Penrose and Jennifer Parsons speak on Regulatory webinar panel to New York State Bar Association members

The New York State Bar Association is hosting a virtual webinar entitled ‘Bermuda and Cayman Islan...

Contributors: Jennifer Parsons
12 Oct 2020 | News

Blockchain Game

At Appleby we embrace technology both as a tool for efficiency and productivity but also for educati...

8 Oct 2020 | News

Appleby to sponsor and speak at Bermuda Tech Summit

Appleby is pleased to be sponsoring and speaking at the Bermuda Tech Summit, which will be held virt...

29 Sep 2020 | News

ILS Bermuda Convergence 2020

Appleby is pleased to be a founding member and leading sponsor of ILS Bermuda Convergence 2020.

23 Sep 2020 | News

Appleby shortlisted ‘Offshore Firm of the Year’ by The Lawyer

Leading offshore firm Appleby has been shortlisted in The Lawyer Awards 2020, ‘Offshore Firm of th...

16 Sep 2020 | News

Bermuda Regulatory Update: Q1 and Q2 2020

Our latest Regulatory update for Bermuda.

2 Sep 2020 | News

Appleby and Appleby Global Services sponsor annual Bermuda Captive Conference

Appleby and Appleby Global Services (AGS) are pleased to sponsor the annual Bermuda Captive Conferen...