The demand for ILS is clearly there, but how can the industry ensure it’s got access to the risk investors need, and continue to create opportunities for its investor base? Is there anything Bermuda can do, specifically, to capitalise on continued investor interest?

Adderley: For me it would be the speed to market of ILS platforms that we create. I think often when we create new products people are concerned whether they’re going to work, the time it’s going to take and the cost to do them. If we create platforms that allow us to do things faster and more cost-effectively than a normal traditional cat bond, investors will want them. So if we’re able to create ILS platforms, collateralised platforms which allow us to get to the market quickly at a cheaper cost, then there’s more of a chance, in my mind, that other new products, different risks or new investors will come.

There is obviously competition out there, there have obviously been a lot of interesting comments about Bermuda from Lloyd’s and the London Forum, but in some ways some of the other jurisdictions are helping Bermuda without realising they’re helping. I understand, Germany has said that if you want to market products into Germany you have to be a Solvency II compliant company.

So then I think, “What jurisdictions are competing with us.” How many jurisdictions have companies, which are deemed to be Solvency II equivalent? For us, SPIs would not be. So what are we seeing now? We’re seeing a lot of people today going to us, “Brad, let’s take over SPIs and upsize it to be a Solvency II equivalent class, 3As, 3Bs and 4s.

It’s good for us, but the problem for everyone else, Gibraltar, Malta and the rest who are trying to get into the space, is they don’t even have that in their bag. So yes, there is competition but in some ways what we’re going to have to do is make sure that when laws in other jurisdictions change, can we as a jurisdiction, Bermuda Monetary Authority (BMA), make sure our laws comply with theirs to allow us to do business?

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