Summit delegates express concern about the war in Ukraine
There was no shortage of views on the war during the Bermuda Risk Summit.
Some delegates considered that a short period of hostilities would limit its effect on the insurance industry but the longer the war lasts, the more issues it will impact.
Global companies have scrambled to withdraw business services in Russia in the face of widening sanctions from Western powers.
Attendees heard repeatedly of the successful positioning of highly capitalised reinsurance companies in Bermuda, making the right moves to be the best they could to provide products and services to global customers that sought increasing risk management needs.
Participants expressed concern for the human tragedy involved, but when asked to consider the conflict from a business perspective, KBRA managing director Peter Giacone commented: “From a claims perspective it is manageable right now. But obviously longer term, as this conflict, God forbid, continues to escalate and extend, that has long-term ramifications.
“We’ve already seen that impact on the supply chain. Inflation. What’s it going to do to interest rates?”
Discussions at the conference included a reflection on the improving reinsurance pricing, conceding there had been difficulties in recent years. But there was agreement that price increases have been inconsistent across lines.
Technology, model development and exposure management and data improvement is improving due to the pandemic, which positions Bermuda to again be the place for a future capital influx.
The innovation in the Bermuda market and the regulatory authority (The Bermuda Monetary Authority) that encourages it, were also points of agreement.
But it was also noted that there have been ongoing improvements in terms and conditions and much more to do in updating wording, as insurers remained focus on buying more reinsurance.
The war in Ukraine led several delegates to express concern about potential supply train issues and the general uncertainties of war, the threat of nuclear weapons and further energy constraints.
The panel heard estimates that there could be 10 to15 billion dollars of aviation losses already.