Bermuda re/insurers pay US customers $400bn in 20 years: BMA - Reinsurance News

According to commercial market claims data collected by the Bermuda Monetary Authority (BMA), Bermuda re/insurers paid out $209.6 billion to US policyholders and cedants for large catastrophes, property and casualty losses and life insurance claims from 2016 until 2020.

The BMA’s 2017 survey showed that during the twenty-year period from 1997 to 2016, Bermuda re/insurers paid out $208.7 billion to US policyholders and cedants.

Overall, both of these surveys show that Bermuda re/insurers have paid out over US$400 billion to US policyholders and cedants since 1997, reflecting the growing significance of the Bermuda re/insurance market’s contribution to the US.

Moreover, the results display an increasing trend of annual loss payments to US policyholders and cedants, with annual payments rising steadily from $24.4 billion in 2016 to $58.8 billion in 2020.

The $209.6 billion in total losses paid is comprised of $120 billion relating to property and casualty insurance losses and $89.6 billion attributable to life insurance claims.

Gerald Gakundi, Director, Insurance Supervision, commented: “The roughly $400 billion in US losses paid since 1997 by Bermuda re/insurers reflects the tremendous growth in the Bermuda re/insurance market.

“This growth is spurred, in part, by the ability of Bermuda to attract a deep pool of global talent that drives product innovation and supply of risk capital capacity.

“Bermuda remains well positioned, and the survey results show that the BMA’s regulatory framework promotes sustainable business models that are resilient and capable of staving off the evolving risks, including the economic impact on US communities posed by climate change and other emerging risks.

“The ability of US re/insurers to cede risk to Bermuda enables diversification of risk globally, making the cost of buying insurance particularly catastrophe, property and casualty insurance, more affordable to customers living in US danger zones and significantly lowering the insurance protection gap.

“The additional capital and sophisticated risk and asset management from the Bermuda life reinsurance market continues to enable US insurers to meet the promises made to their policyholders.”