Since its inception in 2011, Bermuda International Insurance and Reinsurance (BILTIR) has established itself as a voice and advocate for the success and growth of the long-term reinsurance sector in Bermuda – and beyond.

The health and importance of Bermuda as a reinsurance hub has come under scrutiny in the association’s recent ‘Building for the Long’ report in which BILTIR CEO Susan Williams-Charles (pictured) said confidence in the market was justified.

“The key message I would like readers to take away from the report is the overall commitment of the Bermuda reinsurance/reinsurance market – and specifically BILTIR members – to operate in a high-quality, reputable jurisdiction, and to be appropriately regulated in order to “Policyholders have to believe they are protected. “And that’s where a lot of the scrutiny comes from, because we work in this sensitive area of ​​retirement savings, where people need to feel that they can trust that when they need an insurance company or a reinsurer “They will be there as well.”

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Closing the global protection gap

She said that this section on protecting policyholders is one of the three overarching themes of the report, while closing the global protection gap is a second theme. On the latter issue, she highlighted the importance of making people understand how much financial support the market has provided over the years. BILTIR members have made a total of $137 billion in payments to policyholders in connection with closing this protection gap over the past five years – an ongoing commitment.

“I also think Bermuda re/insurers have a good reputation for settling payments quickly to make sure people get what they need, when they need it,” she said. “Then the third topic is about scrutinizing the investment portfolio of reinsurers in this space. For us, it’s about making sure we’re clear about the quality of the investments that are being made, it’s about how they’re being managed and where they’re being managed.

“There has been some lack of understanding and clarity around these topics. Our report (highlights) contains a lot of key statistics that demonstrate the quality of assets under management. Ninety-two percent (92%) of our rated assets under management are investment grade or higher.

What’s happening in the reinsurance/reinsurance industry in Bermuda?

Williams-Charles noted that what the BILTIR survey made clear is that its members are well capitalized and hold high-quality assets, providing security and assurance to policyholders. However, by looking at the market, she can see a range of opportunities and challenges putting pressure on the sector.

She said the Bermuda market was well established, and she knew from her work at the Bermuda Monetary Authority and a range of other global organizations that the Bermuda Monetary Authority was well respected by her peers. She said this was an important point to acknowledge, because there was a lot of scrutiny on the scope of the life insurance sector in Bermuda.

“The message that I think is important to get across, linked to this audit, is that external regulators who may have policyholders who are ultimately reinsured by companies in Bermuda have a responsibility to policyholders in their jurisdiction,” she said. “. “And they have to give priority to policyholders. So, I think the audit should not be seen as a lack of faith or any kind of criticism of the system.

“The BMA has created a proper mechanism for cooperation in the regulatory community. They work in a very transparent way and I think if you ask other regulators that have to interact with them on a regular basis, they will be able to confirm that. Not every regulatory system or regulator is as transparent as you are.” BMA in terms of the work that goes on there, and what they do with specific companies or groups they have in common.

Where does the market go next?

The market has grown significantly over the years, which has been driven in part by a series of regulatory and supervisory improvements in the life industry that have positioned Bermuda as a global reinsurance hub. This has improved the market’s reputation, and William Charles’s ambition as leader of the association is to continue to push for Bermuda to be seen as a thought leader in this area.

The challenge not only facing Bermuda, but now facing many countries, is how to harness the growing demand for innovation and use innovative new ideas and technologies to their advantage. She said new products are needed to meet the needs of policyholders, while efforts also need to focus on increasing take-up of existing products and communicating and educating people more effectively about why they are important.

“This is a challenge, and it is a global challenge,” she said. “We are looking to support education and innovation in Bermuda so we can take some steps to help close the protection gap. I believe our jurisdiction is well placed to do this; we have a sound regulatory framework in Bermuda and we have decades of great talent on the island.”

“When I go to Beltaire, in every meeting, I talk to some of the smartest people I’ve ever met, and with such a high level of focus. This is the place for innovation and solutions. I’m very excited to be part of the organization and its continuing journey.”

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