Bermuda Captive Insurers Will Cover Their Fair Share of Hurricane Losses

Last week's 13th annual Bermuda Captive Conference highlighted the Bermuda insurance market's role in global risk innovation as well as the Bermuda insurance industry's value, through billions of dollars of claims payments, in helping communities and businesses recover and rebuild after catastrophic events like Hurricane Irma.

Discussing the recent spate of major Atlantic hurricanes, Grainne Richmond, president of the Bermuda Insurance Management Association, said, "Bermuda's commercial and excess insurers may be covering in the high numbers, but captive insurers will be covering their fair share, as well, whether it's hardware store owners or hospitals that may have part of their property or business interruption covered via their Bermuda captive." Ms. Richmond went on to say, "While exact numbers are not yet known, it is agreed by all that the support the captive industry provides will be substantial."

The 2017 Bermuda Captive Conference, held September 10–13, attracted more than 750 registrants, totaling almost 800 room nights at Fairmont Southampton, the event venue. The conference attracted captive owners, managers, brokers, and service providers who experienced a full agenda of topics ranging from InsurTech and cyber-risk to claims handling and investment strategies.

"We've had a very successful conference," said Bermuda Captive Conference Chair David Gibbons. "Notably, several new and prospective captive owners came to see first-hand what Bermuda has to offer. Many of these were from new and emerging markets, including Canada and Europe. Through the many sessions and events, they witnessed the depth and breadth of the intellectual capital we have on the island and how we work together to innovate this industry."

Most attendees traveled to the island from the United States, but delegates also came from the United Kingdom, Canada, and Europe. Countries represented included Belgium, France, Germany, Ireland, Japan, the Netherlands, Canada, the United Kingdom, and the United States. The aftermath of Hurricane Irma, which temporarily shut down flights through Miami, caused about 50 cancellations by registrants to the conference, primarily from Latin America.

Bermuda is the top global captive jurisdiction, home to close to 800 captive insurance companies supporting primarily Fortune 500 corporations in the United States and generating over $55 billion in annual gross written premiums.

Conference organizer Rhona Emmerson said, "The hurricane activity and closure of Miami airport did affect a few attendees, but we expect to see them at the next event in 9 months' time. Numerous 2018 commitments have already been sent in by both sponsors and delegates."

The Bermuda Captive Conference returns to its former spring slot next year, running June 11–13, 2018.

Photo of Bermuda Captive Conference Chair David Gibbons, above, is by Keimon Lawrence.