Dr Gibbons: Bermuda sees steady rise in ILS formation
Dr Grant Gibbons, Minister of Economic Development, will join a Bermuda delegation to attend a series of meetings in London as well as the annual Trading Risk Awards Dinner on June 20.
A Government press release stated that Dr Gibbons will join representatives from the Island’s reinsurance, broker, legal, investment management and accounting firms from June 20 to 21 to promote Bermuda’s role in the Insurance Linked Securities (ILS) market.
The focus of the trip is to meet with ILS industry leaders and to promote the benefits of setting up business, deploying capital and referring business to Bermuda.
Minister Gibbons told the House of Assembly: “The Insurance Linked Securities sector has experienced substantial growth in the last few years.
“It is estimated that Alternative Risk Transfer now represents 14 percent of global reinsurance capacity and a far greater percentage of property catastrophe reinsurers’ capacity is now provided through ILS.
“Since the BMA developed “Since the BMA developed Special Purpose Insurer legislation in 2008, there has been a steady increase in new ILS business formation in Bermuda and further positive momentum is possible if Bermuda makes an ongoing investment in this area.
In 2011 and 2012, Special Purpose Insurers (SPIs) represented 43 percent and 51 percent of all BMA company registrations, showing record highs and underscoring the increasing importance of attracting ILS business to the island. This business is attracting foreign investment to the island as well as creating jobs and an increase in economic activity in all sectors of our economy. It is important for the Government to actively promote this business to remain at the forefront of emerging industry trends.”
The Bermuda delegation will attend several meetings with companies including Goldman Sachs, Aon Benfield, Sidley Austin and Mayer Brown while they are in London.
The Minister and Bermuda delegation also plan to promote the ILS networking conference “ILS Bermuda: Convergence 2013” which will be held in Bermuda in November this year. The Convergence 2013 conference is organised by the ILS Focus Group and is being supported by the Bermuda Business Development Corporation.
The Convergence 2013 conference is planned to provide information and education on ILS, as well as building awareness, understanding and synergies among event delegates.
Minister Gibbons said: “Bermuda has traditionally been at the forefront of new trends in the risk industry and the visit to London and conference in Bermuda in November will help to enhance our reputation as the world’s risk innovation capital.
“We in the Ministry of Economic Development and the entire Government are focused on reviving our economy, attracting foreign investment and creating jobs. Through this public/private partnership we are confident we can continue to bring new business to Bermuda.”
The key industry meetings are being held to coincide with the annual Trading Risk Awards Dinner on June 20. This was described by a press release about the visit as “a key networking event” which will be attended by a “who’s who” of ILS industry leaders.
There will be acknowledgment of the outstanding contributions and achievements of the last twelve months. Several Bermuda firms are represented in the shortlisted finalists for awards.