The Bermuda International Long Term Insurers and Reinsurers (BILTIR), a trade association with over 70 member (re)insurance companies and service providers, has published a report examining the history and present condition of Bermuda’s long-term insurance sector.
The report, “Building for the Long Term: Examining the History, Future, and Importance of Bermuda’s Long-Term Insurance Market,” offers an in-depth look at the industry. Informed by a study of 55 life and annuity (re)insurers who are members of BILTIR, the report provides a comprehensive analysis of regulatory initiatives and investment capital trends within Bermuda’s market.
One of the key findings highlights efforts to close the pension protection gap, with BILTIR members reporting total benefit payments of $137 billion over the past five years.
The report also emphasises the importance of policyholder protection, noting that among reporting companies, assets held exceed liabilities by $231 billion. These assets, which are used for reinsuring existing business, direct writing, or financing growth, demonstrate a high level of diversification.
The report shows that stable investment capital is driving industry innovation through strong returns. It reveals that 92 percent of BILTIR members’ rated assets under management are investment-grade, and 95 percent of their bonds, debentures, and structured assets are investment-grade. Additionally, 77 percent of assets have extra protection through secured trusts, funds withheld, or MODCO arrangements.
Suzanne Williams-Charles, CEO of BILTIR, commented: “As evidenced by this data, Bermuda’s insurers and reinsurers hold an important role in protecting policyholders. Strong, evolving regulation and stable capital investments create an environment for excellence within the industry.”
“Addressing the pension protection gap is a global issue and Bermuda is taking centre stage as the location to support the changing industry. This jurisdiction stands as a best practice model for others.”
The report also outlines the regulatory environment established by the Bermuda Monetary Authority (BMA) over the past 55 years, which has been instrumental in enhancing policyholder protections.
Supported by a well-capitalised industry, Bermuda’s regulatory framework adapts to changing market conditions, ensuring it remains relevant to the current economic landscape. This approach provides a model for effective oversight and dynamic control within the industry.
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