Bermuda's Insurance Sector Grows In 2014
by Mike Godfrey, Lowtax.net, Washington
09 February, 2015
The Bermuda Monetary Authority (BMA) has reported healthy growth in 2014 for its insurance industry, with licenses granted to 89 new insurance entities – 65 new insurers and 24 new intermediaries.
The most significant growth was in the long-term (life insurance) sector. Growth in this area was supported by the decision of the National Association of Insurance Commissioners (NAIC) to grant conditional Qualified Jurisdiction (QJ) status to Bermuda effective on January 1, 2015.
The NAIC is the US standard-setting and regulatory support organization created and governed by the 50 US state insurance regulators, the District of Columbia, and five other US territories. Having QJ status allows reinsurers in Bermuda to reinsure US risk on a non-discriminatory basis and benefit from reduced collateral requirements.
Alongside the addition of ten new long-term insurers, Bermuda registered 16 new captives, 11 new commercial insurers writing general business, and 28 Special Purpose Insurers.
Both captive and commercial registrations remained moderate during 2014. However, BMA's Assessment and Licensing Committee granted approval to an additional 22 captive and commercial insurers, which the BMA anticipates will formally register in the first quarter of 2015.
Shelby Weldon, BMA Director of Licensing and Authorizations, said: "The 2014 registration activity continues to demonstrate Bermuda's global position as a leading alternative risk transfer marketplace. We remain the global leader in both captives and Insurance Linked Securities and our international reinsurance sector remains one of the world's top reinsurance markets."
Bermuda also reported that, in the area of asset management, the territory registered 80 new funds. Weldon added: "Recent efforts have also seen renewed interest in Bermuda from funds and asset management entities and we hope to build on that momentum throughout 2015."
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