Increase in special purpose vehicles reflects the growing importance of ILS
The Bermuda Monetary Authority has announced that 13 new insurers registered in Bermuda during the first quarter of 2013. This is a marked increase from the seven new insurers registered in Q1 2012.
“Registrations are trending upwards,” said BMA director of licensing and authorisations Shelby Weldon. “This year is definitely off to a very good start.”
Eight of the new registrations were special purpose insurers (SPIs) with total premiums of more than $93m. This included three SPIs underwriting over $1bn of catastrophe bonds and ILS. There were also five captive insurers among the new registrations.
“The SPIs are covering a diverse range of business activities, from excess of loss coverage, to property catastrophe reinsurance, to proportional reinsurance,” Weldon continued. “The market is continuously finding various ways to utilise these vehicles to complement traditional reinsurance.”