The Bermuda International Long Term Insurers and Reinsurers (BILTIR) has released a comprehensive report detailing the evolution and current state of Bermuda’s long-term insurance sector. This trade association, which includes over 70 member (re)insurance companies and service providers, offers a thorough analysis of industry trends and regulatory initiatives.
Titled “Building for the Long Term: Examining the History, Future, and Importance of Bermuda’s Long-Term Insurance Market,” the report draws on data from 55 BILTIR member companies involved in life and annuity (re)insurance. It provides a detailed examination of regulatory efforts and capital investment trends shaping the market.
A significant finding in the report is the industry’s progress in addressing the pension protection gap. BILTIR members have reported total benefit payments amounting to $137 billion over the past five years, highlighting their critical role in financial security for retirees.
The report also underscores the robust financial health of the sector, noting that the assets held by reporting companies exceed liabilities by $231 billion. These assets, earmarked for reinsuring existing business, direct writing, or financing growth, reflect a high degree of diversification and financial stability.
Investment capital stability is another key driver of innovation within the industry, according to the report. It reveals that 92 percent of the rated assets under management by BILTIR members are investment-grade, and 95 percent of their bonds, debentures, and structured assets are also investment-grade. Moreover, 77 percent of these assets benefit from additional protection through secured trusts, funds withheld, or modified coinsurance (MODCO) arrangements.
Suzanne Williams-Charles, CEO of BILTIR, highlighted the significance of these findings: “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.”
Williams-Charles also emphasized Bermuda’s leadership in addressing the global pension protection gap, positioning the jurisdiction as a model for best practices: “Addressing the pension protection gap is a global issue and Bermuda is taking centre stage as the location to support the changing industry.”
The report details the regulatory environment established by the Bermuda Monetary Authority (BMA) over the past 55 years, which has significantly enhanced policyholder protections. Bermuda’s regulatory framework is described as adaptive to changing market conditions, ensuring its continued relevance and effectiveness.
Overall, the report portrays a well-capitalized industry supported by dynamic regulatory oversight, positioning Bermuda as a leader in the global long-term insurance market.
