Bermuda’s life and annuity sector has continued to expand. Thirteen new commercial life and annuity companies set up shop on the island last year, according to a bulletin from Conyers.

Much of this growth is tied to the introduction of enhanced prudential standards, known as CP2, which came into effect in March 2024. These updated rules have made Bermuda even more attractive to insurers from markets like the US and Japan, according to the bulletin.

It also points out that Bermuda-based reinsurers are expected to cover nearly 30 per cent of the insured losses from the devastating wildfires that swept through Southern California in January. The total insured losses from that event are estimated at $30 billion.

“These developments affirm Bermuda as the offshore domicile of choice for reinsurers and capital providers in the reinsurance space,” the Conyers bulletin stated.

On the property and casualty side, the Association of Bermuda Insurers and Reinsurers reported a record-breaking $171 billion in gross written premium in 2023, up from $145 billion the year before.

In property and casualty, the Bulletin said climate change and AI are shaping how risk is managed and priced. According to Conyers, these shifts “have offered a unique opportunity to redefine how risk is assessed, protection gaps are determined, products are developed and claims are managed.”

The insurance-linked securities space is also evolving. “There was a raft of significant cat bond transactions … with a number of issuers now providing over a billion dollars of coverage,” Conyers reported.

Notably, the launch of Canada’s first cat bond in early 2025 marked another milestone. Flexible licensing frameworks like special purpose insurers and collateralised insurer registrations continue to make it easier for new players to enter the market.

Conyers said regulators are keeping pace with the changes. The Bermuda Monetary Authority’s 2025 strategy includes integrating artificial intelligence and climate change risk into how companies assess and price risk.