ROUNDTABLE: INSURTECH
CAN TECHNOLOGY BE A NEW ECONOMIC PILLAR FOR BERMUDA?
“There’s a lot of meaningful, positive activity happening. ”
Devon Sherman
Devon Sherman: MIT has done some excellent research on looking at different innovation ecosystems that succeed and fail. The research shows that five key stakeholders need to be engaged in order for ecosystems to thrive: entrepreneurs, corporations, universities, risk capital and government.
There’s a lot of meaningful, positive activity happening within each of these stakeholder categories that’s contributing to making Bermuda a thriving insurtech hub.
However, there are also opportunities and gaps. The more these five stakeholders are in conversation with each other and sharing a consistent narrative of “why Bermuda” to startups and backing that narrative up with the right resources, the better.
“We will continue to see investment by existing insurers in technology.”
Heather Kitson
Heather Kitson: I am working with Malcolm Furbert who is setting up a Bermuda insurtech trade association. We feel that there’s enough companies and service providers on-Island to form a community to share innovative ideas and help promote Bermuda as an innovation hub.
This association will be formed by a community of insurtechs and forward-thinking insurance companies. We will continue to see investment by existing insurers in technology and technology will become a differentiator, if not the differentiator, for economic success in terms of driving better decisions through improved data-driven insights, reduced operating costs and improved customer service.
“The BDA and the government have done a great job in highlighting our expertise.”
Ari Chatterjee
Ari Chatterjee: We will continue to see quality companies come here. In three to five years we’ll see a substantially larger number of insurtechs in Bermuda, looking at where the money is going and where the insurance trends are, especially towards more underwriting capital and ILS and maybe even crypto. We have the infrastructure here and the regulations. The guidance we receive from the BMA is quite substantial in that journey.
We need to step up to some of the challenges, especially with talent and the cost of doing business here. We will probably continue to attract the larger, more institutional backed players that will create more jobs and create a talent pool that we can all hire from. I’m also interested to see what happens at this intersection of insurance and climate and global regulation that is currently manifesting itself everywhere.
Bermuda has significant infrastructure to develop as a climate risk hub, so far the BDA and the government have done a great job in highlighting our expertise.
“Bermuda has that right combination of expertise on climate and insurance.”
Darren Wolfberg
Darren Wolfberg: There are very few places in a position to become the global leader in insurtech but I think Bermuda has that right combination of expertise on climate and insurance and as a regulated ecosystem.
I don’t think there’s a better jurisdiction. Speaking of the five different stakeholders in that process, I think it’s Bermuda’s to lose.
James Ferris: If a “technology” business becomes part of the Bermuda’s business infrastructure, then I would say that business has been successful, rather than its being a standalone pillar. I want to see more businesses considering fintech options and using regulatory sandboxes beyond insurance players.
Success includes Bermuda being home to an active M&A environment with technology startups being bought, sold and transacted here.
Sandra DeSilva: Yes, I see a shift in the way capital enters the re/insurance industry, so technology to support this process is on the rise and it’s where I have focused a lot of my work.
“Tech companies will choose to set up here.”
Mitchell Klink
Mitchell Klink: There are two certainties: Bermuda will always be at the forefront of innovating on insurance products, and technology will always be a part of that. When you combine those two certain needs, I can’t envision a Bermuda five years from now where insurtech isn’t far stronger than it is today.
What advantages does Bermuda have over another jurisdiction specifically for insurtech? You have a concentrated pool of insurance talent, insurance expertise, insurance infrastructure, and professional services companies that understand how to review and service insurance companies. >>>
“I’m hoping that there will be more growth in the insurance space.”
Adam Adamson
<<< As long as Bermuda continues to have that infrastructure in place, along with the regulatory infrastructure, tech companies will choose to set up here, because where better is there to go?
Adam Adamson: The Five Year Horizon is great. People we’re talking to every day are looking at Bermuda as a place to set themselves up as a regulated vehicle because of the infrastructure. The BMA has a great framework, infrastructure and programme which helps companies go from being small outfits to something a bit bigger. You don’t find that in London. I’m hoping that there will be more growth in the insurance space.
“We also protect the investors when they put their capital at risk.”
George Alayon
George Alayon: We are open for innovation. The service businesses, the banks, the trust, the funds, they are all open for experimentation, and not just in insurance and digital asset businesses. I want to avoid predicting the future—we prudently manage the future.
Remember, the BMA is still protecting policyholders but we also protect the investors when they put their capital at risk. That is the biggest challenge.
Josephine Noddings: It’s pretty clear that the technologies available to insurance companies are going to grow and develop, and the use of those technologies by insurers is going to continue. >>>
“Some stakeholders have been involved in insurtech here for a long time.”
Josephine Noddings
<<< It’s been a long time, some stakeholders have been involved in insurtech here for a long time.
I think it’s going to snowball over the next few years as it becomes more publicised and we attract more talent and investors to Bermuda.
As long as we continue working with stakeholders and continue to be reactive to what the industry needs, we’ll remain at the forefront of the industry.
Image courtesy of Shutterstock / Iryna Imago
