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

companies throughout the world who were finding placements in historic markets difficult to secure How do you anticipate Bermuda will continue to adapt and evolve? There are several reasons that Bermuda will continue to dominate the risk transfer market. Bermuda has established a strong and knowledgeable government regulatory oversight department. It keeps the business safe and secure. In many other jurisdictions compliance has become excessively intrusive and overly expensive without necessarily improving results. Bermuda has also become a centre for reinsurance talent—both imported executive talent and a large number of domestic employees and executives who have been well trained. Bermuda is very close to the US where it provides more than 50 percent of US reinsurance demand (nearly twice the amount of US reinsurance in the remainder of the world). Bermuda has direct flights to the UK and its taxes are lower than those of most other jurisdictions. What will be the main areas of growth for the Island’s risk transfer market? The main growth for the Island might come from the growth of ILS providers, because investment returns have shrunk in both size and yield. What are the main challenges you see ahead? The principal challenges are the global economy coupled with advanced technical knowledge. Certain risk areas will change while others will emerge. Second, interest rates do not seem likely to advance materially over the next several years, although a modest rise in rates seems inevitable. Are there any other leaders you particularly admire for what they have done to help propel Bermuda to prominence as a risk transfer hub? Several leaders have been instrumental in building the Island’s capacity. Brian Duperreault has been a major contributor to the Island’s success and seem likely to continue to contribute with his focus on technology and his significant investment support from his major stockholder. BERMUDA’S LEADERS PART II Don Kramer, established ILS Capital Management in 2011. He is chairman of the management committee, chairman of the investment strategy committee and chairman of the board of the 1609 Fund. Prior to founding ILS Capital Management Kramer held numerous senior executive positions in insurance, banking and investments, as chief executive officer, president, chairman or general partner. His not-for-profit activities include serving as co-chairman of Bermuda First, a think tank focused on issues facing the Island of Bermuda. Kramer is also a member of the Chatham House think tank in the UK. He holds an MBA in economics and investments from New York University and is a longstanding chartered financial analyst. He is a frequent speaker on insurance industry topics and has received numerous awards. Do you believe Bermuda will remain a risk transfer hub? Bermuda is currently the dominant reinsurance centre in the world. It was active in reinsurance in the early 1970s with many leading insurance brokers establishing offices in Bermuda and participating in insurance and reinsurance placements through Lloyd’s and other markets. In 1985 ACE and subsequently XL were created in Bermuda to provide coverage for Fortune 500 companies and other large buyers who couldn’t get adequate coverage from US domestic and international insurers and reinsurers. Both ACE and XL were formed (almost like captives), with funds from a large number of their insured clients. In 1993, following Hurricane Andrew, several new investors saw an opportunity to take advantage of a hard market together with reinsurance price increases and a shortage of capacity. Accordingly they formed several new reinsurance companies to provide capacity to global “In many other jurisdictions compliance has become excessively intrusive and overly expensive without necessarily improving results.” Donald Kramer Job title: Founder, chairman and managing partner Company: ILS Capital Management 33 2016 Bermuda:Re/insurance+ILS


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