The Development of the Bermuda Reinsurance Market

The Bermuda Monetary Authority has published a consultation paper outlining the first phase of a resolution regime for the commercial insurance sector, designed to align with international standards. The framework establishes the BMA as the Resolution Authority with five core objectives and defines which insurers will fall within scope. This phased approach raises important questions about governance, recovery planning, and the practical implications for domestic insurers and Internationally Active Insuranc

Bermuda has emerged as the dominant global hub for life and annuity reinsurance, now holding over $900 billion in US life and annuity liabilities and accounting for 84% of all US reserves ceded offshore. This analysis examines how the island's sophisticated regulatory framework, purpose-built infrastructure, and commercially engaged regulator have created a structural advantage that extends beyond its traditional catastrophe reinsurance roots into long-dated life business from the US, UK, and Asia.

On 2 December 2024, the Bermuda Monetary Authority (BMA) released several key documents to guide insurance entities in their year-end reporting and compliance obligations.

Bermuda has seen a steady increase in new captives being formed as well as new structures, risks and geographies being covered.

Bermuda's managing general agent market is evolving rapidly as capacity providers demand better governance, aligned incentives, and transparent oversight. With regulatory scrutiny intensifying and new capital structures emerging, the island's sophisticated infrastructure positions it uniquely to accommodate the next generation of MGA platforms that combine specialist underwriting expertise with dedicated capital vehicles.

The insurance-linked securities (ILS) market is evolving with multiperil structures and risk commingling becoming increasingly prevalent. As data centre build-outs present new opportunities and challenges, industry experts weigh in on whether ILS can shoulder the massive exposures ahead, while casualty sidecars continue to generate discussion despite limited transaction activity.

The Bermuda Monetary Authority (BMA) issued on 6 October 2020 the Insurance Sector Operational Cyber Risk Management Code of Conduct (Code)

The Bermuda Monetary Authority has introduced a new Police Clearance Certificate requirement for Key Persons of regulated financial institutions, effective October 2026. This regulatory change strengthens vetting processes and aligns Bermuda with international standards by requiring additional criminal history documentation during approval processes. In-scope insurers must now navigate new compliance obligations for controllers, officers, and other designated Key Persons.

Commercial insurers registered under the Insurance Act 1978 (the Act) are now required to establish and maintain a head office in Bermuda in accordance with changes to the Act that came into effect on 1 January 2016.

One way that the Bermuda Monetary Authority (BMA), as the island's financial regulator, addresses these uncertainties is by requiring insurers and reinsurers...