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

BMA) now that Bermuda’s statutory insurance regime is on a par with European regulators. The build-out of highly experienced teams within the insurers, brokers and other intermediaries as well as the audit and law firms and, of course, the regulators, not only serves to generate thought leadership but also a real and substantial presence on the Island. This translates into constant innovation and excellent service. What will be the main areas of growth for the Island’s risk transfer market? We can expect to see further growth in the ILS sector as the market matures thanks to the increasing appetite of investors for ILS as an investment class that is not correlated to the traditional securities markets. What are the main challenges you see ahead? We expect M&A activity in the reinsurance space will continue due to commercial pressure and the lack of organic growth options. In 2015, there were more than 20 major transactions, including the high profile acquisition by EXOR of PartnerRe, (CHW acted for EXOR). This transaction saw an investment by a new player in the insurance space, but many transactions will consolidate the market further leading to rationalisation of staff and the possible loss of expertise from the Island. Brexit represents a challenge for Bermuda not only as a domicile but also as a leading British Overseas Territory possibly in the context of more schisms within the EU, the impact of which is unknown. Increasing competition is inevitable from other jurisdictions that increasingly see the benefits of credible regulatory oversight and the attractiveness of the ILS market. Are there any other leaders you particularly admire for what they have done to help propel Bermuda to prominence as a risk transfer hub? There have been many industry leaders who have done so much for Bermuda’s continuing growth and prominence from Messrs Reiss, Starr and Stempel through to Brian Duperreault. The list is long and growing. BERMUDA’S LEADERS PART II Ernest Morrison practises in all areas of corporate and commercial law including corporate governance and regulatory issues, mergers and acquisitions (with particular experience in regulated entities, such as insurance companies), private equity investments, asset finance, shipping and aviation, private and public offerings of debt and capital (including listings on all major stock exchanges) and the establishment of investment funds and managers. His insurance practice includes advising on the establishment and regulation of Bermuda insurers, brokers and managers and investments in insurance and reinsurance companies. Morrison has been with CHW as a partner since the firm’s inception and was also a partner in Hallett Whitney & Patton, one of the firm’s two predecessor firms. Do you believe Bermuda will remain a risk transfer hub? Absolutely. The continuing development of new and innovative solutions for customers emanating from Bermuda is a function of the substantial depth of the intellectual capital present on the Island. How do you anticipate Bermuda will continue to adapt and evolve? We expect Bermuda to be well positioned to take advantage of its position at the centre of the risk transfer landscape. The implications of “Brexit” have yet to be fully absorbed but we anticipate that the achievement by Bermuda of Solvency II equivalence will see many UK-based insurers looking to Bermuda as an alternative gateway to Europe. We also expect to see further investment in Bermuda from US and Canadian re/insurers with European operations as they will be able to organise their group supervisory structure more efficiently under one regulatory body (the “We can expect to see further growth in the ILS sector as the market matures.” Ernest Morrison Job title: Managing director, head of corporate and commercial department Company: Cox Hallett Wilkinson 24 2016 Bermuda:Re/insurance+ILS


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