With the outstanding catastrophe bond and related insurance-linked securities (ILS) market at an all time high on the back of a record-breaking first half of the year, the industry is meeting in Bermuda over the next two days for the annual Convergence event to discuss the market and future of the ILS asset class.
While other jurisdictions have emerged, Bermuda remains the leader for the issuance of ILS, highlighted by the fact the Bermuda Stock Exchange (BSX) boasts 785 listed issuers and $38.4 billion in market capital outstanding, which represents a roughly 92% global ILS market share.
“The Bermuda market has once again displayed an ability to excel commercially through world class infrastructure, a robust regulatory framework, and by being a home for global talent. These three factors will ensure that Bermuda remains the ILS jurisdiction of choice and solidifies Bermuda’s reputation as the ‘World’s Risk Capital’,” said Aditya Dutt, President, Aeolus Capital Management, a sponsor of the event.
Dutt is hopeful that the event will result in “deeper collaboration, innovation, and resilience within the ILS sector.”
It comes at an interesting time for the market. Technology continues to advance and will surely integrate more with the risk transfer sector, while climate change is altering the risk and loss landscape, and inflationary pressures drive up loss costs, all in a hard market environment.
“The expertise of our long-established service providers, our robust yet pragmatic regulatory environment, and our excellent reputation in both the asset management and reinsurance sectors means Bermuda is by far the Insurance Linked Securities (ILS) jurisdiction of choice. As Bermuda is a global leader in the ILS issuance, the BDA is proud to sponsor 2023 ILS Convergence. We look forward to engaging in discussions with anyone looking to expand their Bermuda presence both at the event and beyond,” said David Hart, CEO, Bermuda Business Development Agency.
Kathleen Faries, CEO, Artex Capital Solutions, describes Bermuda’s ILS market as the place where risk meets innovation and collaboration between investors and insurers thrives.
“The Island has solidified its position as global leader due to its ability to attract capital, remain resilient and uphold a robust regulatory environment. As a pioneer in the ILS industry, Artex continues to see success in Bermuda, underscoring our role in helping our clients find a better way to put capital to work in this asset class. We’re looking forward to joining the world’s leaders in ILS at the Bermuda ILS Convergence event this year as we collectively work to shape the future of the ILS asset class,” said Faries.
The ILS market’s investor community continues to expand, and Bermuda is home to a large portion of this as well as having expertise in re/insurance, with more than 1,400 companies on the island.
“Fermat Capital Management, LLC is very pleased to be a supporter of ILS Convergence 2023. Convergence creates an important and much-anticipated opportunity for the industry and its leaders to gather and engage each year. We recognize the commitment and dedication of ILS Bermuda in promoting the ILS asset class through this event, which features impressive speakers and topical, thoughtful discussions for our market, and look forward to participating in this year’s conference,” said John Seo, Fermat Capital Management.
“This event is the reflection of Bermuda’s preeminence in the worldwide ILS market and the leadership of the island in terms of regulatory framework, the expertise of its local talent and the depth of its (re)insurance market,” added Andre Perez, Chairman and CEO, Nascent Group.
The emergence of ILS has been a significant development in the re/insurance sector and as it continues to grow, it’s expected that Bermuda will remain the jurisdiction of choice.
