Bermuda Builds On ILS Success

Bermuda has firmly established itself as the market leader and domicile of choice for insurance-linked securities (ILS), with its favourable regulatory environment and reputation as a leading offshore financial centre, according to Tim Faries, who leads Appleby's Insurance team globally and in Bermuda and also heads Bermuda's Corporate practice team.

Since the special purpose insurer (SPI) category was introduced by the Bermuda Monetary Authority (BMA) in 2009, he said the industry has really taken off on the Island to a point where Bermuda is now the unquestioned top domicile for the ILS market, which is estimated to be worth $25 billion in capital globally.

Faries puts the Island's unparalleled global success in this sector down to having the right regulatory framework in place that allows new ILS structures to be established both quickly and efficiently. Added to this, he said the BMA has a reputation of being both accessible for companies wanting to do business