WTW’s Bermuda Market Review

Bermuda has maintained its prominent position in the global insurance and reinsurance market, particularly in servicing the complex needs of large businesses and their risks. A report by Kirsten Beasley, head of Willis Towers Watson's Bermuda office, and her team highlights major developments and trends. Below is a brief summary of the key findings.

Written on 09/19/23

To read the full report, please click here.

According to WTW experts, Bermuda continues to provide crucial blue-chip capacity as global carriers reduce their capacity. The island's mature yet innovative regulatory framework, substantial capital, and global accessibility, along with strong ties to the US, solidify its role in the market. Furthermore, Bermuda's market boasts a highly knowledgeable talent pool, a vital asset in addressing complex risk transfer solutions.

Capacity and Pricing in Catastrophe Markets

Bermuda carriers have shown commitment to North American natural catastrophe-exposed business. Boutique brokers have established a presence in Bermuda, further affirming its importance. The market has witnessed significant capacity expansion over the past few years.

Casualty Market Dynamics

Bermuda's excess casualty market, which offers approximately $600 million in combined limits across 17 markets, remains dynamic and accessible. The market has adapted by offering occurrence and claims-made policies, aligning with US and London markets. Smaller limit offerings and broader program participation have become prevalent.

Healthcare Market Outlook

The island’s healthcare market caters to US health businesses, covering all segments of complex healthcare, from hospitals and facilities to senior care. Being generally a lead-excess market, however, there is also some appetite for primary coverage. This field has experienced double-digit rate increases in recent years, ranging from 15 % to 100 %. With carriers acting more cautiously, recent years have seen reductions to average increase rates of between 10 and 15 %.

Financial, Executive, and Professional Risks (FINEX)

The FINEX market has offered broad coverage for corporate risks since the 1980s. Rate increases have slowed down, with clients having more stability in securing coverage. Carriers have become more selective in expanding coverage, particularly in cyber insurance.

Captive Market Trends

Captives, on the other hand, are becoming more interesting when it comes to managing emerging and unquantifiable such risks as cyber. Analytics tools are being utilized to make informed captive decisions and diversify risk portfolios. Directors & Officers Liability has also seen increased interest despite market challenges.

Captive Growth

Capital and surplus, as well as total assets, have shown steady growth over the past three years. Premium volumes have varied but are impacted by large captives with inconsistent premium levels. Bermuda remains a resilient and attractive market for insurers, reinsurers, and captives, offering expertise, innovation, and capacity in an evolving global landscape.

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