Bermuda remains the dominant leader in Insurance Linked Securities structures, the House of Assembly was told on Friday, in response to parliamentary questions from Douglas De Couto, the Shadow Minister of Finance.

Mr DeCouto asked what actions are the government taking in response to a report of a 13.8 per cent decline in ILS listings on the Bermuda Stock Exchange and how it intends to protect Bermuda’s global leadership in this critical market

David Burt, the Premier and Minister of Finance, quoting from the same report noted that Bermuda had over a 90 per cent share of global listings.

He said: “Bermuda does remain the dominant leader in Insurance Linked Securities structures, evidenced by its holding of over a 90 per cent market share of global outstanding cat bond issuances.

“The Bermuda Stock Exchange continues to support the efficient listing service for the ILS market.

“The decline in ILS listings is primarily attributed to the maturity and redemption of the issuance notes in the normal course of the ILS market cycle.”

He said Bermuda continues to see an uptake of other forms of alternative capital, namely collateralised insurers.

Mr Burt pointed out that other jurisdictions were attempting to become ILS centres and the noted decrease was not a Bermuda-specific issue.

He said: “The Bermuda Monetary Authority consistently supports the ILS market by taking actions that assure that Bermuda remains attractive.

“Such actions include facilitating fit-for-purpose regulation, introducing the 3-day approval process for certain ILS structures and recently exploring how emerging risk can be more effectively facilitated.

“In this regard, the BMA has registered to date three issuances of 144A cyber bonds representing a significant milestone for the alternative capital market in Bermuda as it seeks to facilitate new product lines to address protection gaps in the market.”

As Mr DeCouto sought to probe further as to what formal assessments the government had undertaken to determine the threat of any emerging competitive jurisdictions, Mr Burt made it clear that any such assessment would not be discussed in the public domain.