Bermuda Benefits From A Strong And Capital Efficient Regulatory Regime

Bermuda's long-term reinsurance sector is experiencing a new phase of complexity and scrutiny but will remain strong, say Max Tetlow and Cathryn Minors of Appleby.

The long-term reinsurance sector, also known as the asset intensive sector, has seen remarkable growth in Bermuda in the past decade. To what do you attribute its success?

Bermuda's long-term reinsurance industry has grown at a tremendous rate over the past 10 years for a number of reasons. This success can be attributed to a combination of regulatory and market-driven factors.

The Bermuda Monetary Authority (BMA) is widely considered to be a credible, collaborative and pragmatic regulator that prioritises policyholder interests. It has implemented a prudent and internationally recognised regulatory regime. For example insurers may seek approval from the BMA to utilise the scenario-based approach (SBA) which allows insurers to model asset-liability management more accurately. Bermuda also holds