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

credibility, Solvency II equivalence and NAIC approved jurisdiction status being just two of the more recent examples of that recognition. By maintaining or exceeding the highest global standards, Bermuda guarantees market participants the comfort of operating in a secure and internationally accepted jurisdiction. This background assures that Bermuda will remain a centre for operations in the captive/commercial/ILS spectrum in the years ahead. There is every expectation that new products being developed on the Island will respond to and drive the evolution of the risk transfer landscape. What will be the main areas of growth for the Island’s risk transfer market? Bermuda will retain its reputation as a laboratory for the “alternative” risk transfer market. Catastrophe bonds and other ILS products are providing durable new lines of risk transfer and tapping into new markets. Likewise, across geographical regions, new lines of business and types of risk are being featured in these products. Mortgage insurance, longevity risk and even lottery risks are being transferred by Bermuda insurers into the capital markets. Long term (life) business is experiencing a surge of interest in Bermuda, which we expect to continue apace. The captive insurance market is quite mature, but interest in new captives remains high. The Latin American market is a particular area of growth. What are the main challenges you see ahead? The soft market that has defined commercial insurance activity for some time presents challenges to participants around the world. One response, consolidation, is a strategy such conditions produce; another is the development of new risk transfer products. We note that Bermuda remains at the forefront of these developments. Are there any other leaders you particularly admire for what they have done to help propel Bermuda to prominence as a risk transfer hub? If one were to single out current leaders for their participation, the list would include Jeremy Cox and Craig Swan and their team at the BMA, for their achievement in leading Bermuda to Solvency II equivalence. Likewise, Brad Kading and Leila Madeiros of the Association of Bermuda Insurers & Reinsurers have advocated strongly for the Bermuda market here and overseas. BERMUDA’S LEADERS PART II Michael Frith is a director in the corporate department in the Bermuda office of Conyers Dill & Pearman. His practice includes all aspects of Bermuda corporate law, with a particular focus on insurance regulatory and transactional matters. Frith is a standing member of the Insurance Advisory Committee, advising the Bermuda Ministry of Finance on matters relating to the Bermuda insurance industry, and serves on the Bermuda Employment Tribunal. He is also the co-author of the Bermuda chapter of The Insurance and Reinsurance Law Review. Do you believe Bermuda will remain a risk transfer hub? Bermuda is a genuine marketplace, where insurance activities are significantly more intense than would be the case in a simple domicile. Many factors have led to this success. Innovation and creativity have been constants throughout the Island’s business history. Bermuda has earned a well-deserved reputation for evolving efficient risk transfer solutions, and doing so quickly. The support of a sophisticated and pragmatic regulator has also been an essential element in fostering the spirit of innovation and speed-to-market. The Bermuda Monetary Authority (BMA) has played a central part. Bermuda’s accumulated knowledge and expertise is continually brought into play as new business opportunities arise. How do you anticipate Bermuda will continue to adapt and evolve? The fact that Bermuda’s market has developed in the context of globally recognised regulation gives it strong “The captive insurance market is quite mature, but interest in new captives remains high.” Michael Frith Job title: Director Company: Conyers Dill & Pearman Timeline: 2010: Partner/director, Conyers Dill & Pearman 2003: Joined Conyers Dill & Pearman 14 2016 Bermuda:Re/insurance+ILS


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