Bermuda's Catastrophe Insurance Industry Resilient
by Mike Godfrey, Lowtax.net, Washington
08 November, 2017
The resilience of Bermuda's (re)insurance sector to withstand potential catastrophic events strengthened year-on-year, according to a Bermuda Monetary Authority report published on November 2.
The second annual "Catastrophe Risk in Bermuda" report shows that while gross catastrophe exposure increased by about nine percent year-on-year, capital levels also increased at a slightly higher rate.
Craig Swan, Managing Director of Insurance Supervision at the Authority, said: "Bermuda is predominantly an insurance-based international financial center specializing in the niche of catastrophe reinsurance, and is host to the third-largest reinsurance market in the world. Overall, this year's results again highlight the industry's resilience to major, but improbable, catastrophe events and the diversity of modeling practices in Bermuda. This underscores the reputation of Bermuda insurers as being generally well-capitalized."
Statistics from the 2016 Catastrophe Risk Report reveal that, overall, the global share of gross estimated potential loss assumed by Bermuda's insurers for major catastrophe perils increased by about two percent. And out of an estimated, hypothetical total industry loss of USD125bn for a Miami-Dade Hurricane, the Bermuda market's share would be around 13 percent (or USD15.9bn). This figure is up two points year-on-year from the 11 percent share (or USD13.4bn) reported in the 2015 report.
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