Tag Archives: Association of Bermuda Insurers and Reinsurers

Catastrophes, Disaster Resilience

Bermuda and Insurance: Small Country,Mighty Contribution

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By John Novaria, Managing Director, Amplify

Bermuda is more than pink beaches and golden sunsets – it’s a major force in the re/insurance industry. The Association of Bermuda Insurers & Reinsurers (ABIR) works to raise the profile of Bermuda’s reinsurers and insurers and represents their public policy interests around the world.

ABIR CEO John Huff recently sat down with Triple-I CEO Sean Kevelighan to discuss the contribution of Bermuda companies to global resiliency. Some of those contributions include:

  • Bermuda insurers and reinsurers paid $2.7 billion in claims from last winter’s storms in Texas.
  • Some Bermuda companies are preparing to step up and help fund new U.S. infrastructure projects through their investment portfolios.
  • According to the Bermuda Monetary Authority, the island nation is home to 1,200 (re)insurers holding more than $980 billion total assets and writing gross premium of approximately $240 billion.

Huff is excited about the role the re/insurance industry is playing in securing a more resilient future for society.

“If you talk to your kids, this may be the first time our work is resonating with the next generation,” he says. “I do think it’s our opportunity to lead in the area of climate, resilience and adaptation.”

In discussing the Bermuda value proposition, Huff noted the concentration of exceptional talent within a square mile of Hamilton’s business district, which has captured the attention of investors who have plowed capital into the jurisdiction to form startup companies. Huff also said many established companies in Bermuda are scaling up by expanding their capabilities to take on more risk through analytics, underwriting and capital allocation.

Indeed, Bermuda is full of surprises. Huff said the general public doen’t realize that Bermuda companies underwrite half of the mortgage insurance sold in the US, creating opportunities for more young families to purchase their first home.

Learn more about ABIR.

Insurance Industry

Bermuda has it covered from start to finish

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Triple-I welcomes the Association of Bermuda Insurers & Reinsurers (ABIR) as an Associate Member.

ABIR CEO John Huff writes about the influx of investment that solidifies Bermuda’s role in the global re/insurance industry.

Much is made of the word “finish.” Finish strong, they say, in sports. A fight to the finish yields the strongest competitor. But there’s also a lot to be said for the word “start.” People often yearn for a “fresh start” or talk of “the start of something big.”

Bermuda’s startup insurers are proud of the moniker, but don’t be fooled by the name. Yes, they bring fresh capital and innovation, but they are led by industry veterans and backed by sophisticated investors eager to balance their portfolios with uncorrelated risks like natural catastrophes and social inflation.

Still, every startup is like a seed that needs the proper environment to thrive. It’s no accident that they choose Bermuda. It’s a place where these firms can grow, with an abundance of talent and an uncommon agility fostered by a regulatory system that has earned unparalleled recognition around the world.

Recently, the Association of Bermuda Insurers & Reinsurers, or ABIR, welcomed three of these international startup companies as new members: Canopius Reinsurance, Conduit Reinsurance and Mosaic Insurance. Canopius Re Bermuda CEO Charles Craigs, Conduit Re CEO Trevor Carvey and Mosaic CEO Mitch Blaser have been named to the ABIR board of directors. The three new companies bring ABIR’s total membership to the largest in its 28-year history and they join well established ABIR members, who collectively do business in 150 countries – offering global, well-regulated re/insurance products, protection and peace of mind to consumers and businesses.

These startups, along with Bermuda’s legacy companies, are changing the face of insurance, providing the diversification and spread of risk that today’s world demands. Climate change and cyberrisk in particular pose new and evolving challenges, which these re/insurers are eminently qualified to tackle – with their superior analytics, underwriting and capital deployment strategies.

If you’re looking for proof that there’s something special happening here, just heed the saying, “Follow the money.” Private equity is redoubling its investment in Bermuda, pouring an estimated $19 billion to the island in the past year. Our industry is very strong and it is attracting international attention from investors who won’t shy away from, but in fact relish, the hardening, complex market and everything it brings.

On behalf of the Bermuda financial community, I want to extend a warm welcome to these companies. The hard market will be a marathon, and with their addition we’re off to a good start.

John M. Huff is President and CEO of the Association of Bermuda Insurers and Reinsurers (ABIR) and a former president of the National Association of Insurance Commissioners (NAIC).