Posted on 26 Apr 2013 by Neilson
Insurer registration with the Bermuda Monetary Authority during the first quarter of 2013 has almost doubled from the rate achieved during the same period in 2012 and shows no signs of slowing down.
Thirteen insurers registered in Bermuda during the first quarter of 2013, up from the seven registered in the first quarter of 2012. Shelby Weldon, the BMAs director, licensing and authorizations, said April has been a busy month for registrations, which continue to trend upward.
Of the 13 new registrants, five were new captive insurers. Eight were special purpose insurers with combined premiums of $93 million. Of the eight SPIs, three are underwriting more than $1 billion in catastrophe bonds and insurance-linked securities.
The SPIs are covering a diverse range of business activities, from excess of loss coverage, to property catastrophe insurance, to proportional reinsurance, Weldon said in a written statement. The market is continuously finding various ways to utilize these vehicles to complement traditional reinsurance.
In March, BMA regulators said SPIs registered in Bermuda sponsored 40% of the insurance-linked securities issued worldwide in 2012. Weldon said at that time BMA was pleased to see the initial interest that followed completion of an SPI regulatory framework in 2009 translate into active business. Bermuda had 856 captives at the end of 2012, down slightly from the 862 captives recorded a year earlier.
Bermuda, one of the world's largest captive domiciles, is moving toward meeting Solvency II requirements under discussion by the European Union. BMA already announced that captives there would be excluded from Solvency II-style equivalency requirements, although captives will have to file risk-return plans under a consolidated filing. A new data collection program is being started to ensure captives are appropriately licensed and regulated.