Bermuda's Insurance Linked Securities Industry Growing
by Mike Godfrey, Lowtax.net, Washington
25 July, 2016
Bermuda's convergence and insurance-linked securities industry created at least 400 jobs in the jurisdiction by the end of 2015, a 30 percent increase on the previous year.
The findings are contained in a research report commissioned by the Bermuda Business Development Agency (BDA), titled "Leading the Way: Bermuda's ILS Market 2016."
Overall, the study estimated a total economic impact of BMD734m (USD734m) from Bermuda-based insurance-linked funds.
"We commissioned this research to provide details on the economic impact of the insurance-linked securities market on Bermuda – both actual jobs created and aggregate fiscal contribution," said Ross Webber of the BDA.
"The results of the study are certainly positive, proving the convergence sector has quickly become a pivotal and multiplying contributor to Bermuda's overall economic health. The study is not exhaustive, so data gleaned presents a picture of the minimum contribution."
Bermuda has the world's largest share of catastrophe bond listings, with more than BMD20bn (USD20bn) in assets under management, or three-quarters of global capacity, according to the report.
In 2009 Bermuda introduced legislation allowing for the creation of "Special Purpose Insurers," specifically designed to attract insurance-linked securities and collateralized insurance companies to the island.
"Since then, Bermuda has become the market leader and the recognized hub for this sort of innovation and product development," said Webber.
See all of today's news