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

Bermuda continues to have the largest share of insurance-linked securities, catastrophe bonds, and other risk transfer products. How do you anticipate Bermuda will continue to adapt and evolve? The global cyber insurance market could grow to $5 billion in annual premiums by 2018 and at least $7.5 billion by the end of the decade, according to research by PwC. There is no doubt that cyber insurance offers considerable opportunities for revenue growth. Insuretech presents a huge opportunity for the insurance industry. Blockchain technology is still a new and uncertain area for reinsurers but has the potential to deliver millions in operational savings, improve efficiency and accuracy and improve client satisfaction within reinsurance. Bermuda could stand to benefit from Brexit. The UK’s decision to leave the European Union could have important consequences for many re/insurers based in the UK which trade heavily with Europe. New source markets are emerging in Latin America, Canada, Asia Pacific, Africa and Australia as companies moderate traditional insurance-buying practices and increase their use of self-insurance and alternative risk-financing mechanisms. What are the main challenges you see ahead? Continued pressure on existing models; disintermediation; and the prolonged soft 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 are many in the insurance industry who have been instrumental in the global respect for Bermuda’s leadership and proven record on compliance and transparency. A great deal of gratitude is owed collectively to the Bermuda-based reinsurers, and their commitment to the Island and investment in its infrastructure and the local community. The BMA is a world-respected regulatory body that works closely with industry, government, and international regulatory bodies to keep Bermuda’s oversight of financial entities responsive and contemporary. Its sophistication as a commercial insurance regulator speeds capital to markets to take on global insurance risk. BERMUDA’S LEADERS PART II Arthur Wightman is territory leader for PwC Bermuda, responsible for a leadership team whose job it is to sustain and enhance an inclusive, flexible and high performance culture that enables PwC’s professionals to develop the leadership required to create lasting value for the companies, communities and broader stakeholders it serves. He has deep experience and relationships with the following regulators: Securities and Exchange Commission, Bermuda Monetary Authority (BMA), Financial Conduct Authority, Prudential Regulation Authority, Monetary Authority of Singapore, Swiss Financial Market Supervisory Authority, National Association of Insurance Commissioners and Public Company Accounting Oversight Board. As a thought leader on reinsurance topics, Arthur Wightman writes white papers and other publications and reports for PwC and speaks at conferences. He is a fellow of the Institute of Chartered Accountants in England and Wales and member of the Chartered Professional Accountants of Bermuda. Do you believe Bermuda will remain a risk transfer hub? Considered the world’s single most important property and catastrophe market, in the last 10 years Bermuda insurers and reinsurers have contributed $35 billion to US catastrophe losses. And, according to a 2015 report by Washington DC-based economist Charles Ludolph, Bermuda supports an estimated 500,000 jobs worldwide, including 70,000 in the UK and 330,000 in North America, through trade, foreign direct investment and portfolio investment capacity. Bermuda’s Solvency II equivalence is expected to boost market share even further. And because of the Island’s foresight, the Island’s leading captives sector remains exempt from Solvency II regulation. “Blockchain technology is still a new and uncertain area for reinsurers but has the potential to deliver millions in operational savings.” Arthur Wightman Job title: Territory leader for PwC Bermuda and insurance & markets leader for Bermuda and PwC in the Caribbean Company: PwC Bermuda 28 2016 Bermuda:Re/insurance+ILS


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