Finance Minister on reinsurance industry: ‘We can, must and will improve our performance’

  • Photo by Glenn Tucker

Finance Minister ET Bob Richards answers questions on the 2014 Budget during a press conference Friday afternoon.

    Photo by Glenn Tucker Finance Minister ET Bob Richards answers questions on the 2014 Budget during a press conference Friday afternoon.


New ways of buying insurance do not generate as many jobs — but Bermuda has to keep its position at the cutting edge of the industry, Finance Minister Bob Richards said yesterday.

Mr Richards added: “Several Wall Street analysts have painted a rather grim outlook for the reinsurance industry, citing too much capacity and too few disasters.

“As a major reinsurance centre, we need to look at what we can do to make our offering in this sector more attractive and competitive.

“As there is already a highly-developed physical, legal, professional and regulatory infrastructure in place for insurance, our emphasis should be to keep on doing what we’re already doing, only do it better.”

He added that insurance linked securities — where outside investors shoulder the risk for good returns if the policies are not called on — did not generate the same number of jobs as traditional reinsurance firms.

But he added: “We must be and be seen to be, innovators and on the leading edge in the risk business.

“This will enhance Bermuda’s reputation as the crucible for risk management innovation which will surely augur well for this sector and Bermuda.”

Mr Richards added that the asset management sector — which last year was boosted by new legislation designed to make the Island more attractive to the business — was also crucial to Bermuda’s prosperity.

He said: “We now have to continue ramping up our marketing and business development efforts internationally through the newly-formed Bermuda Business Development Agency (BDA) to promote our advantages internationally.

“BDA is a joint venture between Government and our private sector partners.

“The offshore funds business is a highly competitive business, heavily reliant on speed to market and sensitive to costs and we have not traditionally excelled at either of these.

“However, we can, must, and will improve our performance. We used to dominate the offshore funds sector, but we have lost ground to the competition.

“As financial markets continue to recover, there will be opportunities to rebuild this business in Bermuda.”

You must be registered or signed-in to post comment or to vote.

Published Feb 22, 2014 at 8:00 am (Updated Feb 21, 2014 at 10:53 pm)

Finance Minister on reinsurance industry: ‘We can, must and will improve our performance’

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon

  • Take Our Poll

    • "What is the most significant reason for Bermuda residents choosing to leave the island?"
    • Too small
    • 3%
    • Different way of life
    • 4%
    • Cost of living
    • 77%
    • Gang activity and general crime
    • 3%
    • Jobs/professional advancement
    • 8%
    • Education
    • 2%
    • Attitudes towards gays
    • 3%
    • Total Votes: 5235
    • Poll Archive

    Today's Obituaries

    eMoo Posts