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Bermuda Reinsurance Leaders 2016

and the incredible intellectual talent on the Island. One of the primary reasons for Bermuda’s dominance is the Bermuda Monetary Authority (BMA), which proactively interacts with companies on the Island while collaborating with other regulators around the world. The BMA allows new products and capital access to the market in a very short period of time when compared to many other jurisdictions and have the appropriate regulatory touch while also earning the challenging but essential Solvency II equivalence. Capital providers also have confidence in Bermuda’s strong UK-based legal tradition with access to the Privy Council. Finally, Bermuda has some of the best and brightest risk management professionals in the world who are innovative and adaptable. These individuals and companies believe that Bermuda is the best place to update, transform and develop new products and different forms of capital structures that will continue to meet the ever-changing risk transfer landscape. What are the main challenges you see ahead? One of the continued challenges for both the insurance and reinsurance markets is the low level of economic activity in the world today. The International Monetary Fund continues to cut global growth projections due to the challenging economic environment, directly impacting the potential premium written and profits that insurers and reinsurers can produce. In order to stimulate economic growth in their individual countries, some governments have been cutting interest rates, and in some cases, pushing interest rates into negative territory. These low interest rates limit the amount of investment income that insurers and reinsurers can earn on their assets. Insurers are looking for additional yield which has led to an increased allocation to high yield bonds and hedge fund investments. These types of investments have added more risk and volatility into asset portfolios. This difficult combination of lack of economic activity with a low interest rate environment and potential volatile investment strategies continues to hamper the road ahead. BERMUDA’S REINSURANCE LEADERS Stephen Young was appointed chief executive officer, global reinsurance in January 2016. Prior to this role, he served as executive vice president, chief underwriting officer, head of global catastrophe reinsurance, responsible for Endurance’s global property, workers’ compensation, personal accident and terrorism catastrophe reinsurance portfolios, with a focus on high severity, low frequency risk. Prior to his tenure at Endurance, Young held various underwriting positions in the industry. A native of Bermuda, he graduated from Babson College with a BSc in finance. Do you believe Bermuda will remain a risk transfer hub? What has made it so successful in this sphere? Since the early 1970s, Bermuda has been in the forefront of the risk market and will continue to be a recognised leader in risk transfer into the future. Bermuda is a unique underwriting environment that does not exist anywhere else in the world. Bermuda is home to tremendous actuarial, analytical and underwriting talent. The constant interaction and continual debate as these professionals work within their respective markets to analyse and underwrite risk will no doubt lead to further innovation, providing new products and solutions for individuals and companies around the world. How do you anticipate Bermuda will continue to adapt and evolve? Bermuda will continue to thrive as a risk transfer jurisdiction because of our regulatory consistency, legal environment “Bermuda is a unique underwriting environment that does not exist Stephen Young anywhere else in the world.” Job title: Chief executive officer, global reinsurance Company: Endurance Specialty Insurance Timeline: 2016: Chief executive officer, global reinsurance, Endurance 2005: Head of catastrophe reinsurance, Endurance US 2002: Underwriter, Endurance Re 41 2016 Bermuda:Re/insurance+ILS


Bermuda Reinsurance Leaders 2016
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