Demonstrating the vital role played by Bermuda in helping to ensure global insurance and reinsurance market stability, the local market’s reinsurers have paid out almost $73 billion to cedents from the European Union over the last 20 years.
The Bermuda Monetary Authority (BMA) has collected and analysed commercial market claims data and found that of the $72.8 billion paid out to European Union (EU) policyholders and cedants by Bermudian reinsurers over the past 20 years, almost half of it ($36.8 billion) was paid to UK cedents.
Craig Swan, Managing Director, Supervision at the Authority, commented on the findings of its first EU Data Claims Survey completed in July 2017; “The survey results show the significance of the Bermuda (re)insurance market’s contribution to Europe over the past two decades. European insurers cede risk to Bermuda, making the cost of buying insurance – particularly property/catastrophe insurance – more affordable to customers in the EU.”
Between 1997 and 2006 claim payments to the EU from Bermudian reinsurance firms totalled approximately $16.5 billion, with $7.4 billion paid to UK policyholders or cedants and $9 billion to other EU policyholders or cedants.
From 2007 to 2016 the figure jumps, reflecting the greater insurable values at risk, with $56.3 billion total claims paid to the EU, $29.4 billion of which was to UK policyholders and $26.9 billion to other EU policyholders or cedants.
Swan added; “BMA is grateful to the companies that took part in the survey. This is very useful information for the Bermuda market as it demonstrates the value of diversifying risk globally in an increasingly competitive world-wide market.”
