“We think of ourselves as unique, from the restructuring point of view, and the way we work with the Bermuda Monetary Authority,” says Brad Adderley, re/insurance law partner at Appleby in Bermuda.

Adderley is keen for the Bermuda Monetary Authority (BMA), to help the island keep its position in the global industry and he is also part of a new breed looking outside the box to make sure it stays that way.

The firm is an offshore law specialist with around 470 people, including 60 partners, operating from 10 offices around the globe; the largest being its Bermuda base.

The other locations for the firm’s offices include the British Virgin Islands, Seychelles, Cayman Islands, Guernsey, Hong Kong, Isle of Man, Jersey, Mauritius and Shanghai.

Offshore law and the jurisdictions it oversees has had a battering in recent years and there is now a focus on working closely with regulators to ensure that the reputations of everyone involved are built on trust and compliance.

“From a Bermudian point of view, as the world’s third largest re/insurance jurisdiction, most of the insurance world touches Bermuda,” Adderley explains, and he is keen to help it stay in the game.

The Bermudian government wants to shore up the island’s position as one of the leading global re/insurance domiciles and embrace the changing digital world. As part of this, the island’s government is keen to develop digital incubators, attract cyber security centres, and adopt an e-ID similar to a programme already established in Estonia.

Bermuda’s culture and resources are a boon to this, says Adderley, who believes that the island’s unique history of involvement with insurance have given it a workforce of people who have the know how to revolutionise their insurance practices.

Adderley is also keen to see the captive market on the island maintain its current status. “We’re the largest captives domicile in the world,” he states. At the same time, he wants Bermuda to remain the pre-eminent insurance linked securities (ILS) and catastrophe bond domicile in the world.

Essentially, Bermuda should have as many of its fingers in as many pies as possible so it can serve the industry as a true ‘one stop shop’ for everything related to the insurance industry.

“Bermuda is becoming more important; its life sector is also growing when previously we were only known for P&C. It’s become a hub for so many different specialities,” said Adderley.

The Appleby partner does recognize that the market has its issues though.

There are “new players in the works creating ILS platforms”, Adderley said referring to emerging ILS hubs such as London and Singapore.

Compliance remains a core issue for carriers on the island though, and one that is obviously central to Appleby’s operations, as well as those of the wider industry on the island.

The hard work being undertaken by the BMA to ensure that Bermuda is compliant with regulatory frameworks such as Solvency II in the European Union is something that the industry appreciates. In fact, Adderley said the BMA’s activities actually help attract re/insurance industry businesses to the island.

“We are getting interest in Bermuda because of the BMA and not in spite of it,” Adderley said.

“Everyone used to do everything they could not to be regulated, but clients say they have to be regulated. And it’s good that it’s regulated, but it has to be the right regulation,” he says, adding that while other jurisdictions do not have such stringent regulation, that may ultimately be to their detriment in the long term.

Adderley says this is important as the BMA is creating a jurisdiction that is the envy of others around the world, leaving others on the outside looking in. But developing such a regulatory platform has not been straightforward.

“Getting Solvency II equivalence took years,” Adderley said, adding: “But it came about because carriers and the BMA worked together.”

“It’s going to bring more businesses together,” he says. “Especially around the advent of initial coin offerings (ICOs), blockchain and the rise in crypto currencies. It’s going to help the insurance market go forward, and help transform both sides of the coin.”

Type

Insight

Locations

Bermuda

Share
Twitter LinkedIn Email Save as PDF
More Publications
24 Nov 2022

Information Technology, Outsourcing, Privacy & Data Protection

All aspects of Bermuda's economy rely on information technology and data processing - an essential i...

Contributors: Duncan Card
22 Nov 2022

A Look Back on 2022 and What to Expect for 2023

As we approach the end of 2022, we are able to look back and say with certainty that the arena of la...

14 Nov 2022

When will the court enforce a promise?

As we all know, promises are made and broken all the time. What, if anything, can the law do to assi...

4 Nov 2022

Legally speaking: what not to do when outsourcing operations

In the course of my career, I have drafted, negotiated or otherwise provided commercial and legal ad...

1 Nov 2022

The Insolvency Review – Edition 10

The Insolvency Review offers an in-depth review of the most consequential features of the insolvenc...

25 Oct 2022

Bermuda: Mergers & Acquisitions Comparative Guide 2022

This country-specific Q&A provides an overview to Mergers & Acquisitions laws and regulati...

Contributors: Katie Blundy
24 Oct 2022

Directors’ duties on the eve of insolvency

It is common knowledge that directors of companies owe a duty to the company to act in its best inte...

Contributors: James Batten
13 Oct 2022

Employee probation periods: an update

The Employment Act 2000 is the island’s key piece of employment legislation, applicable to employe...

Contributors: Kiara Wilkinson
6 Oct 2022

Centre Stage: Bermuda’s Role In An Insurtech Revolution

Bermuda is rapidly becoming a focus for insurtechs seeking the island’s expertise, the accessibili...

5 Oct 2022

Bermuda’s Life Marketplace Supports Growing Demands Stemming From Aging Populations

Bermuda’s robust long-term re/insurance sector is well-positioned to support demands for life and ...