Strength In Diversity

Bermuda has long been a favoured jurisdiction of both cedants and investors for setting up ILS structures.

The special purpose insurer (SPI) vehicle, first introduced in 2008, has been well established as the ideal structure for cat-bond transactions. Focused on efficiency and trusting on the sophistication of the parties, the SPI class was specially designed to allow for a near effortless transfer of risk. As a result, Bermuda has become the hub for these transactions and there continues to be significant growth in the number of sponsors and investors looking to benefit from the Bermuda SPI.

While catastrophe bonds continue to be an in-demand ILS solution, Bermuda's ILS regime provides a wide array of options for parties interested in collateralised insurance and reinsurance transactions. Most notably, with the introduction of the Collateralised Insurer class, the space continues to evolve and adapt to the demands of the industry.