BSX CEO: Bermuda Is “World Leader” In ILS
A recent business report in European CEO calls Bermuda a “world leader in the ILS market,” focusing on recent growth in that sector in painting the island as a “premier financial jurisdiction.”
The report, written by Greg Wojciechowski, CEO of Bermuda Stock Exchange, opens by saying, “Most people’s first thoughts of Bermuda will be of a paradise island that combines turquoise waters and pink beaches with old-style British colonial charm.
“To sophisticated investors, however, Bermuda is known as one of the world’s premier financial jurisdictions and is home to the fastest-growing niche sector of insurance linked securities [ILS].
“For decades, Bermuda has been recognised as a centre of excellence in reinsurance and insurance – indeed it is known as the world’s risk capital – but the recent growth in ILS has been remarkable,” Mr. Wojciechowski continues.
“In 2009, the Bermuda Monetary Authority [BMA], the island’s financial regulator, changed the laws to make setting up ILS easier. By the first quarter of 2014, Bermuda was the jurisdiction of choice for more than 60 percent of ILS issued globally.
“The outstanding amount of ILS issued in Bermuda represents 49 percent of the worldwide stock of ILS. This year, the value of ILS listed on the Bermuda Stock Exchange [BSX] broke the $12bn [€8.8bn] mark for the first time.
“While it is known to have beautiful beaches and great golf courses, Bermuda has also strived to be at the forefront of risk innovation since the 1950s.
“For more than 70 years, it has continuously shown the ability to respond to changes in market conditions to the point where investors and the wider financial markets now look to Bermuda for the next industry innovation.
“No asset class illustrates that better than the evolution of the ILS sector.
“The BSX now has $12.43bn [€9.1bn] of cat bonds, ILS and insurance linked investment funds listings. By listing on the BSX, issuers demonstrate a stamp of quality – proving that they complied with internationally recognised standards of transparency and disclosure.
“The steady evolution of ILS business in Bermuda is evidence of the confidence the market has in our ability to innovate, create and support important insurance solutions for its diverse global client base.
“ILS is a great success story, which illustrates Bermuda’s innovation and the island wants to see more of that kind of evolution in other financial sectors. Therefore, to remain attractive and to compete with other domiciles, Bermuda ensures that its regulatory standards are fit for purpose.
“Bermuda’s decades of experience gives it a unique perspective and skill set that allows it to anticipate changes in the market and also the needs of clients.”
