Bermuda has emerged as a leader in the global ILS market only four years after implementing a specific regulatory framework to facilitate the formation of such instruments through a new licence class for insurers.

In 2009, the Bermuda Monetary Authority (BMA) introduced the concept of a Special Purpose Insurer (SPI) – the insurance vehicle of choice for ILS transactions. Bermuda’s regulatory and supervisory framework also provides for the creation of sidecars, Industry Loss Warranties (ILWs), and collateralised reinsurance vehicles.

The ILS market has benefitted from a large investor base and the existing (re)insurance expertise in Bermuda. As we can see Bermuda is well placed to be the jurisdiction of choice for ILS, however we must consider what Bermuda can do as a jurisdiction to improve and/or complement the existing ILS market in order to retain our top spot for the foreseeable future.

What follows are only suggestions about possible ways forward and in no way purports to be an exhaustive, conclusive or entirely feasible list of possibilities on how to keep Bermuda as numero uno. The goal of this article is however, to trigger thought and perhaps dialogue about how Bermuda can retain its reputation as a leading ILS jurisdiction while also increasing our market share in other areas as a result of ILS connections.

Read More

Share
Twitter LinkedIn Email Save as PDF
More Publications
25 Jun 2020 |

ILS needs a buoyant secondary market to thrive – but electronic platforms must come first

A secondary market for ILS can only emerge once the broader market fully embraces electronic platfor...

24 Jun 2020 |

Health and Wellness – Employers Duties

With the current state of COVID-19, many employees are in the midst of now returning to work and oth...

4 Jun 2020 |

Choices of law, jurisdiction must be clear

Ideally, a contract will contain both a “choice of jurisdiction” and a “choice of law” claus...

26 May 2020 |

Technology & Innovation Update Q2 2020

Technological developments have been accelerating at an unprecedented pace in Asia - the first regio...

22 May 2020 |

Reopening workplaces: employment issues

As Bermuda takes the first tentative steps in its phased reopening plan, we review some of the key p...

20 May 2020 |

Threatened insolvency: Personal Exposure of Directors

During the challenging economic environment created by the COVID-19 pandemic, business resilience an...

Contributors: Jerome Wilson
12 May 2020 |

Pandemic-induced market dynamics could result in Class of 2020

Current insurance and reinsurance market dynamics suggest that it could be an opportune time for sta...

7 May 2020 |

Electronic signing of documents and COVID-19

The COVID-19 outbreak has transformed the way we operate in all aspects of life, including and espec...

29 Apr 2020 |

Why the development of a secondary market will transform ILS

The ILS market has become an increasingly important feature in the risk transfer landscape in recent...

23 Apr 2020 |

Duties and Liabilities of Directors of Bermuda companies

During the challenging economic environment created by the COVID-19 pandemic, directors need to be e...

Contributors: Jerome Wilson