Bermuda reinsurance strategy: primary rises
Friday, 08 18 2017, Category: Insurance and Reinsurance, Country: Bermuda
Bermudian reinsurance firms are increasingly becoming insurance firms, as the significant shift in underwriting portfolios of major players based on the island continues. Alongside a shift to primary business the Bermudian re/insurers are also retaining less risk, as they make use of market conditions and alternative capital to better manage their exposures.
Part of the reason for the shift to primary insurance is cited as the increasing levels of competition Bermuda’s reinsurers face from the capital markets, with ILS and catastrophe bond investors making the once core peak catastrophe reinsurance zones their mainstay.