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

BERMUDA’S LEADERS PART II “One of the pillars of our industry is talented resources and I sincerely hope we find a w Andre Perez ay to retain it on the Island.” Job title: Chief executive officer Company: Horseshoe Group What are the main challenges you see ahead? The market is continuously in a state of flux and we need to adapt to those changes. The obvious one is the competition from other jurisdictions who are trying to emulate Bermuda’s success, this is especially true in the ILS space where there are now few jurisdictions around the globe offering somehow equivalent regulatory environment for ILS. One development to watch closely is the ILS initiative by the London Market Group which, if successful, could become a serious alternative to Bermuda, although I believe that there is room for several ILS domiciles. One of the most significant challenges Bermuda is facing is the retention of talent. While work permit policies have been more responsive in recent years, the lack of a path to Bermudian status has resulted is several talented resources leaving the Island. There have been attempts by the current government to introduce a pathway to citizenship but it has been met with fierce resistance from the local population. One of the pillars of our industry is talented resources and I sincerely hope we find a way to retain it on the Island. Are there any other leaders you particularly admire for what they have done to help propel Bermuda to prominence as a risk transfer hub? When Jim Stanard and the late Bill Riker formed RenaissanceRe in 1991, they single-handedly changed the face of catastrophe reinsurance and contributed immensely to making Bermuda the worldwide reinsurance centre it is today. In 1997, Frank Majors and Greg Hagood formed Nephila Capital to sell catastrophe risk to institutional investors, and what seemed like a crazy idea at the time ended up being a game-changer and gave birth to the ILS industry. A lot of Bermuda’s success is to be attributed to the amazing team at the Bermuda Monetary Authority, especially Jeremy Cox, they have helped the Island insurance industry build a solid reputation while allowing it the flexibility to thrive. Andre Perez is the founder of Horseshoe Group. He is in charge of the Group’s operations and responsible for the development of the insurance management and consulting activities. Horseshoe Group was awarded the 2010 ‘Adviser of the Year’ and the 2013 ‘Market Facilitator of the Year’ by Trading Risk magazine. Do you believe Bermuda will remain a risk transfer hub? Thanks to the establishment of the Special Purpose Insurer regulatory regime in 2008, Bermuda is recognised as the premier ILS domicile. Aside from its reputation, ideal geographic location, talent and the efficient tax system, the main contributing factor to Bermuda’s success is its responsive and flexible regulatory regime. Bermuda has now become one of the largest reinsurance domiciles in the world with an impeccable reputation. I believe that its success will continue for many years to come. How do you anticipate Bermuda will continue to adapt and evolve? In recent years, we have seen the establishment of hedge fund reinsurers. Bermuda is very much at the centre of convergence of risk transfer and capital markets. What will be the main areas of growth for the Island’s risk transfer market? For one, the ILS market will continue to grow not only in terms of capitalisation but more importantly in terms of risks and geographic regions. We will most likely see the ILS space take on risks beyond property catastrophe exposures and expand into various lines of business. We have seen several ILS funds establish their operations in Bermuda or at least have a presence in Bermuda. 38 2016 Bermuda:Re/insurance+ILS


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