Bermuda can further improve its world leading position in the insurance linked securities sector, according to David Burt, the Premier.

And his view was supported by Ross Webber, chief executive officer of the Bermuda Business Development Agency, who said the island’s message to the rest of the world is that it is the place to seek and find new ideas and creative solutions.

He also said technologies such as fintech and insurtech find a natural test bed environment in Bermuda.

The two men were addressing a room of delegates at the two-day ILS Bermuda Convergence 2017 event this morning.

Mr Burt spoke of the catastrophes resulting from hurricanes Irma, Harvey and Maria, the earthquakes in Mexico, and the wildfires in northern California.

“The importance of the Insurance Linked Securities business in Bermuda and our catastrophe reinsurance platform has truly been affirmed by these devastating events, and I am pleased that the growth in this annual ILS meeting, mirrors the growth in Bermuda’s ILS industry,” he said.

“The significance of industries like yours, at the cutting edge of risk financing for some of the most destructive events, cannot be understated.”

The insurance industry is expected to pay out $100 billion in claims resulting from losses caused by Irma, Harvey, and Maria. Those payments will support the recovery and rebuilding process of affected individuals, businesses and communities.

Mr Burt, who is also the Minister of Finance, noted that the Bermuda market is expected to pay about 25 per cent of the losses from those catastrophes.

“These events can accelerate a capital market’s incursion into insurance market share held by traditional insurers and reinsurers, especially with regard to the catastrophe business, as ILS increasingly appears to provide capital efficiencies,” he said.

“With these changes, the role of the capital markets in the future of insurance and reinsurance will grow in significance. Reinsurers may improve their own capital structures, by embracing alternative capital models and making them part of their own business plans.”

ILS Convergence 2017 was held at the Hamilton Princess. The event is now in its fifth year.

The Premier spoke of Bermudian-based companies at the front of the pack using new and innovative structures as the ILS sector grows globally.

And he said there is “a promise of further progress in these products for insurance and reinsurance lines, well beyond catastrophe reinsurance”.

Last year the Bermuda Stock Exchange had a record 61 new ILS listings. That had increased to 218 by June, with a value of $24.5 billion.

“As the island remains the leading jurisdiction for the issuance of catastrophe bonds, the Bermuda Monetary Authority reports that ILS issued from Bermuda represents nearly 74 per cent of total outstanding capacity at the end of the first quarter,” said Mr Burt.

“With the backing of industry and Government, the Bermuda Monetary Authority, has always sought effective supervision, combined with coordination among their global regulatory peers, with strong and useful regulation being critical to today’s financial markets.”

Mr Burt, who became Premier following the General Election in July, added: “This new Government believes the Bermuda market can go even further to serve the needs of the corporate world. However, it will take the continued efforts of working together with industry stakeholders, for all of us to reap the rewards and find mutual benefit.

“My message today is the same as it has been over the last few months, Bermuda is an excellent place to do business, and provides an excellent and well regarded platform to — putting it simply — make money.

“I look forward to supporting the growth of this segment and rest assured that my government will do all it can to ensure that Bermuda is not only a great place to live and work, but an even better place to make money.”

The BDA is lead sponsor of the event, which it helped launch in 2013.

Mr Ross said: “Our island is unrivalled in the scope and speed of ILS development and we work hard to keep it that way. Technology can forge a path of disruption.

“Talented minds in this market are looking at distributed ledgers, blockchain and other technologies that can continue that can continue to build on Bermuda’s dynamic reputation and set us apart,” he added.

“Our message to the rest of the world is that Bermuda is different, exciting things happen here, new ideas, creative solutions and fresh ways of looking at things.”

The ILS Bermuda Convergence 2017 event concludes today.