ROUNDTABLE: REINSURANCE

Q5: WHAT ARE YOUR WIDER THOUGHTS ON ESG?

“Insurance is pretty much, by definition, ESG.”
Christian Dunleavy

Dunleavy: Insurance is pretty much, by definition, ESG. I mean, it’s rebuilding communities, individuals, and lives. So we’re already there. We, I think, need to continue to evolve.

Champion: While our industry seems to focus on the “E”, I think some very exciting things are being built around managing the “S” and “G”. I further expect that they will dominate the next phase of talking points from an insurance perspective.

“A further step could be capital being tokenised.”
Josephine Noddings

Noddings: We see a lot of innovation in the sector, especially around certain technologies such as blockchain and technologies that can be used to develop innovations such as smart contracts. A further step could be capital being tokenised.

All those concepts are going to come into play over the next few years as those technologies are embraced and encompassed to streamline the risk chain for all users. The BMA is at the forefront of all this—they embrace the future in the way they regulate their entities.

“I expect to see a continued investment of time and resources.”
Matt Britten

Britten: We are seeing many of our clients look at how climate change will impact pricing. What will my future pricing look like? We are in an industry that’s been very reliant on historical data; that will need to change, which is itself is going to require some innovation.

How do I think climate change is going to impact pricing for next year, five years, or 10 years down the line? I expect to see a continued investment of time and resources into that question.

“We should give a nod to the digital asset space.”
Adam Champion

Champion: Finally, I’d like to note that the Bermuda regulatory environment continues to innovate and we should give a nod to the digital asset space.

We’ve reached the point where genuine progress has been made, and there are some interesting companies in the BMA sandbox.

I fully expect that there will be Bermuda-based insurance transactions on a digital asset basis as early as 2022.


Image courtesy of Shutterstock / vvvita