KBRA: Bermuda Business Environment Fosters (Re)Insurance Innovation

The Bermuda flag with bunched red fabric on a black background

October 30, 2018

The Bermuda flag with bunched red fabric on a black background

In a report, titled Innovation to Foster Growth of Bermuda (Re)Insurance Market Despite Headwinds, Kroll Bond Rating Agency (KBRA) discussed the Bermuda market's long and diverse history of (re)invention to address a multitude of challenging (re)insurance industry issues. According to the report, Bermuda's role as both a seasoned reinsurance provider and a solution incubator for the global (re)insurance industry continues, and KBRA believes Bermuda's role is perhaps even more relevant now than ever before.

KBRA said that at the end of 2016, the Bermuda Monetary Authority reported that the capital and surplus of commercial property-casualty (re)insurers (defined as Class 3A, 3B, and 4) was $110 billion, more than 20 percent of global traditional reinsurer capital. While official numbers for 2017 are not yet available, KBRA expects Bermuda to achieve growth that outpaces the rest of the world for traditional capital and will be in line with the non-Bermudan market for alternative capital. KBRA anticipates capital trends to continue in the near to medium term, despite the natural catastrophes of 2017 and the first half of 2018 that have impacted earnings but have not eroded capital.

The report said, "For nearly 75 years, the business environment in Bermuda has fostered substantial innovation and has always demonstrated a willingness to try new things, despite the naysayers."

Complimentary access to the full report, Innovation to Foster Growth of Bermuda (Re)Insurance Market Despite Headwinds, is available on the KBRA website with registration.

October 30, 2018