Bermuda’s insurance and reinsurance industry remains committed to the European Union (EU), and companies domiciled on the island continue to assume increasing volumes of risk in EU member states, according to the Association of Bermuda Insurers & Reinsurers (ABIR).
A recent survey by the ABIR, which collected 2017 data from all ABIR members, found that Bermuda ABIR insurers and reinsurers operated in 20 EU countries, with almost 16,000 employees in the region.
“The European Union is a very important market for Bermuda (re)insurers, and our members continue to take on increasing amounts of risk in EU member states. Our member companies remain strongly committed to the European market, European ceding companies, and European policyholders,” said John M. Huff, ABIR President and Chief Executive Officer (CEO).
Bermuda is one of only two non-EU jurisdictions to have its regulatory regime for commercial insurers found to be equivalent to the EU’s Solvency II regime, which provides Bermuda’s commercial re/insurers and insurance groups with access to the EU marketplace. At the same time, the island’s financial regulator, the Bermuda Monetary Authority (BMA), is recognised as group supervisor for its insurance groups that do business in the EU.
According to the ABIR, more than 90% of Bermuda-based insurance groups regulated by the BMA have a presence in the EU.
“As ABIR marks 25 years of innovation and leadership, we are working to expand the Bermuda market’s successful, international leadership with continued optimism for growth in key jurisdictions, including the European Union,” said Kevin O’Donnell, President and CEO of RenaissanceRe, and current Chair of the ABIR.
“We are proud to provide this vital partnership of preparation and resilience for European communities. As risks continue to accelerate as a result of factors including economic expansion, technological innovation and climate change, level-playing field access to Bermuda’s capital and expertise will benefit European policyholders, insurers and taxpayers,” he added.
Interestingly, a study last year found that Bermuda re/insurers paid $72.8 billion to EU policyholders and cedents over the last two decades, with the much of this, or $36.8 billion, being paid to UK policyholders. At the same time, of the nearly 16,000 employees in the region, the UK had the most, at almost 10,800.
With this in mind, the fact the UK is set to leave the EU next year potentially with nothing in place to ensure continuity for global insurers and reinsurers, it will be interesting to see how this impacts Bermuda’s relationship with the UK moving forward.
