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Bermuda's Leaders Part II - Service Providers & ILS Specialists 2016

How do you anticipate Bermuda will continue to adapt and evolve? Bermuda is known for its innovation. I see Bermuda continuing to evolve with new uses of technology that are disrupting traditional distribution models. With changes in demographics, a growing sharing economy, and new uses of technology such as Uber and driverless cars, the definition of the customer and the definition of re/insurance will evolve and Bermuda is positioned for the next phase of innovation. Bermuda is well positioned with its standalone Solvency II equivalence with the EU to take advantage of the uncertainty this creates and to be a favoured jurisdiction. What will be the main areas of growth for the Island’s re/insurance market? I expect M&A activities to continue. I see Bermuda continuing to be the leader in the ILS market. Bermuda is also well positioned for new and evolving coverages such as those impacted by technology and risks such as cyber. We have seen tremendous advances in fintech in the banking sector and we are starting to see advances on the insuretech side and how insurers and reinsurers effectively use data analytics to solve tomorrow’s challenges. I also see Bermuda well positioned in the life insurance area as a future growth market. What are the main challenges you see ahead? The key challenge in the market is the pricing environment which is primarily due to excess capital in the industry including additional capital from new players in recent years. Hurricane Matthew, although personally devastating to many, did not have the market-moving impact that many expected. Although there are some signs that interest rates could increase somewhat in the short-term, there is no certainty of meaningful increases on the horizon. We as an industry need to continue to invest in young talent so the concentration of excellence in Bermuda is here for the next generation. The re/insurance and reinsurance companies are going to be significantly impacted by advances in technology, so hopefully we will be able to attract the best and the brightest to our industry. Are there any other leaders you particularly admire? I could list several individuals but it is not one person but the collective body working together that has propelled Bermuda to be a leading financial centre. BERMUDA’S LEADERS PART II David L. Brown is a partner in the financial services organisation (FSO) of Ernst & Young (Bermuda). He has more than 27 years of experience focused on SEC registrant property and casualty insurance and reinsurance companies and asset management companies, as well as diversified financial services companies. Brown joined EY in 1989 and has served clients in the Dallas, Boston, Bermuda, and San Antonio EY offices. Most recently, he served as the leader of EY’s Southwest Region FSO Insurance Group and Southwest Region FSO Assurance Practice. He has relocated to Bermuda where he serves SEC registrant property and casualty insurance and reinsurance companies. Brown is a frequent speaker at regional and national insurance events, hosts roundtable events on emerging topics, and is actively involved in recruiting, education, and quality initiatives within EY. He is a member of the American Institute of Certified Public Accountants, the Texas Society of Certified Public Accountants, and the Massachusetts Society of Certified Public Accountants. He is a graduate of Texas A&M University. Do you believe Bermuda will remain an insurance and reinsurance hub? Bermuda has for decades been a leader in innovation in the re/insurance industry and that continues. The insurance-linked securities (ILS) market is an example where Bermuda is the clear leader. I believe another key success factor is how well the industry and government, including the Bermuda Monetary Authority, work together. The best example is Bermuda’s designation as a Solvency II equivalent jurisdiction with the EU. “The definition of re/insurance will evolve and Bermuda is positioned for the next phase of innovation.” David Brown Job title: Senior partner in Bermuda and insurance leader for the EY Bahamas, Bermuda, British Virgin Islands and Cayman Islands region Company: Ernst & Young (Bermuda) 10 2016 Bermuda:Re/insurance+ILS


Bermuda's Leaders Part II - Service Providers & ILS Specialists 2016
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