Bermuda is number one ILS market

Bermuda has made giant strides to ascend to the top of the charts as the top domicile for insurance linked securities (ILS).

The inaugural Convergence 2013 event has helped cement Bermuda’s position as a global leader in reinsurance — and now — the top domicile for insurance-linked securities (ILS).

The November event drew more than 280 delegates from around the world to Bermuda’s new Pier 6 meeting venue.

Arthur Wightman, insurance leader, PwC Bermuda and ILS Bermuda Committee organizing member, said in a press release: “Bermuda’s ascendancy to a global leadership position in reinsurance and the No.1 domicile for insurance-linked securities is on account of a number of structural advantages but principally because of its capacity to solve problems and innovate.

“In an environment where risks are constantly evolving and the demands of risk managers and investors intensify, Bermuda is at the front edge of the industry’s response.”

Kathleen Faries, CEO, Tokio Solution Management, and also on the organizing committee, said: “Bermuda has continued to respond to the needs of the market over the years.  From the early introduction of captives, to developing a solid regulatory framework to allow for much needed capacity to flow quickly after major cat events, and now bringing the expertise, legislation and services needed to enable new investors access through a variety of platforms.”

Andre Perez, CEO, Horseshoe Group, added: “Above all, we wanted this event to demonstrate why Bermuda is a world-class reinsurance domicile and the worldwide centre of excellence for ILS and Convergence. For those looking to set up an ILS or a Reinsurance infrastructure, we want to assure them that Bermuda is the best place to do it.”

With ILS expected to represent $100 billion of reinsurance capacity in the next five years, the consensus is that the market is here to stay. n