Page 16

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

where participants can meet face to face is likely to go away in the foreseeable future. Bermuda has a great opportunity to distinguish itself by creating an environment in which investors, underwriters and cedants explore new ways to work together without unnecessary impediments and with appropriate governance. The growing community of insurance-linked fund managers in Bermuda is likely to play an important role in this adaptation to change and evolution. What will be the main areas of growth for the Island’s risk transfer market? Bermuda participates in almost all areas of insurance risk transfer today, and will participate in further growth of these and new markets. The insurance-linked fund industry is growing faster than the traditional company market, if from a much smaller base, as it captures a greater share of the property catastrophe reinsurance market and expands into other markets such as specialty (for example, marine and energy, crop, weather), US excess & surplus insurance, and even run-off. Traditional insurance companies in Bermuda will play a large and critical role in assisting this expansion through transforming exposure into forms that meets the needs and appetites of a diversified and articulated group of capital suppliers. What are the main challenges you see ahead? One of Bermuda’s challenges will be to retain the number and quality of entities on the Island to maintain a vibrant marketplace in the face of consolidation. The main assets of insurance are capital and people, so creating the right environment to attract and retain people over the longer term is vital. Bermuda itself is facing challenges about the future of the economy and the workforce, and decisions on these matters will impact the environment for insurance activities in Bermuda. The challenge of a large catastrophe loss is also ahead. Much of the recent growth in the insurance fund market has occurred in a historically low loss environment, which has encouraged rapid evolution of activities and structures, and participants’ expectations about liquidity and return. As in the past, a large loss may challenge some investors’ expectations about loss and liquidity, and possibly test some of the transaction structures built around collateral provision. BERMUDA’S LEADERS PART II Michael Hamer is a partner and senior analyst at Albourne Partners. Based in Bermuda, he  follows esoteric strategies and in particular insurance-linked funds since 2005. He also works with Albourne’s insurance company clients on issues of portfolio  construction relating to insurance  liabilities and regulation. His previous employment included 15 years at J.P. Morgan, and eight years with Centre Solutions,  a reinsurance subsidiary of Zurich Financial Services, in underwriting and risk management in London and Bermuda. He has a BSc (Hons) from the University of Melbourne and an MSc and DPhil in mathematics and economics from the University of Oxford. Do you believe Bermuda will remain a risk transfer hub? The insurance-linked fund industry in Bermuda has evolved alongside the highly successful traditional insurance company industry, benefiting from the market created by the traditional companies, but also adding alternative opportunities for capital and cedants. Bermuda owes its success to a combination of high quality infrastructure (accounting, legal and administration), enlightened regulation, a tax environment appropriate for the industry, and the excitement and challenges of the many startups here. The Bermudian market has attracted adventurous and creative people at all stages of their careers, while Bermudian insurance companies have benefited from a well-educated local workforce that they have provided with opportunities through employment, training and scholarships for further education. How do you anticipate Bermuda will continue to adapt and evolve in light of the changing risk transfer landscape? I don’t believe the need for an insurance marketplace “The growing community of insurance-linked fund managers in Bermuda is likely to play an important role.” Michael Hamer Job title: Partner and senior analyst Company: Albourne Partners 16 2016 Bermuda:Re/insurance+ILS


Bermuda's Leaders Part II - Service Providers & ILS Specialists 2016
To see the actual publication please follow the link above