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Bermuda Reinsurance Leaders 2016

How do you anticipate Bermuda will continue to adapt and evolve? Greater improvements in analytics, modelling, and product development will be the foundations upon which stronger companies will excel. What will be the main areas of growth for the Island’s risk transfer market? Pension funds, hedge funds, private equity groups have discovered the yields available in the re/insurance sector and have injected new capital that has resulted in further price and rate pressure through expanded capacity. We have seen a rapid growth in new risk transfer products such as cat bonds, ILS funds, sidecars and special purpose vehicles. Given that many third-party capital vehicles are domiciled in Bermuda for both tax efficiency and proximity to a homogeneous reinsurance hub, the amount of reinsurance placed in the Bermuda market could continue to grow, especially if third party capital deepens its reinsurance presence for exposures outside of North America. What are the main challenges you see ahead? The commoditisation of our reinsurance products in the face of the new capital. Bermuda needs to reassess our distribution platforms and traditional business model to compete against these lower cost capital providers. This means diversifying our product mix, becoming more nimble in addressing and servicing the customer’s needs and, most importantly, lowering our expense costs. We need to embrace the significant advances in technology that have occurred over the past decade in the area of data aggregation and bring our systems into the 21st century. Are there any other leaders you particularly admire for what they have done to help propel Bermuda to prominence as a risk transfer hub? I have always admired the leadership within Everest. For me, it begins with Joe Taranto whose leadership style has allowed us at Everest to develop an entrepreneurial foundation cemented with creativity that not only defines Everest but reflects the best aspects of Bermuda. Dom Addesso has very adroitly and intelligently added to the foundation that Joe built while quietly leading the company in a complex evolution since Joe’s retirement. BERMUDA’S REINSURANCE LEADERS Sanjoy Mukherjee currently serves in the dual roles of managing director & CEO of the Everest Re Group’s affiliate, Everest Reinsurance (Bermuda) and the Group’s general counsel, secretary and chief compliance officer. He has been with Everest since 2000 where he started with the Group’s run-off affiliate, Mt. McKinley Insurance. Prior to joining Everest, his career included experience in public accounting, software development and information systems consulting, management consulting, and as a long-haul truck driver. He has over 20 years of experience in the re/ insurance industry in a variety of roles including legal counsel, claims management, management consulting, underwriting and regulatory compliance. Prior to joining Everest, he practised law at the firms of Budd Larner Gross Rosenbaum & Sade and Hardin, Kundla, McKeon, Poletto & Polifroni. Prior to attending law school, Mukherjee was an auditor with Touche Ross & Co. Do you believe Bermuda will remain a risk transfer hub? Now that Bermuda has attained Solvency II equivalence, it allows commercial re/insurers to compete in the EU without having to worry about recapitalising, restructuring or even redomiciling their vehicles. Moreover, Bermuda offers capacity from multiple sources whether it be traditional or alternative capital. Relatively inexpensive capital mobility allows for non-traditional entrants to the market such as hedge fund-backed reinsurers. Such an economic climate continues to make Bermuda attractive to buyers looking to fill out their higher attaching catastrophe and casualty towers. Buyers and sellers from all over the world still prefer to come to Bermuda given its geographic proximity and access to the US and Western Europe. “Relatively inexpensive capital mobility allows for non-traditional entrants to the market.” Sanjoy Mukherjee Job title: Managing director and chief executive officer Company: Everest Reinsurance (Bermuda) 18 2016 Bermuda:Re/insurance+ILS


Bermuda Reinsurance Leaders 2016
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