ROUNDTABLE: LIFE AND LONG-TERM RE/INSURANCE

HAS THE MARKET REACHED A CRITICAL MASS IN TERMS OF COMPANIES AND TALENT?

“Investors want to know how stable the jurisdiction is.”
Ahwaz Chagani

Ahwaz Chagani: Definitely, there have been a few transactions where we have tried to partner with companies in Bermuda. All companies have different reinsurance and asset-management capabilities, capital base, and risk appetites. If we are unable to reinsure certain risks associated with a reinsurance opportunity, other Bermuda companies may be able to add value. We’ve definitely benefited from such partnership opportunities.

We’re not a very old company; we have been around for four years. One of the reasons why we set up shop in Bermuda was the great success of very similar companies here.

We know the re/insurance support infrastructure in Bermuda is right, the regulatory framework is right, and the socioeconomic and political stability of Bermuda also plays a role if you’re trying to raise capital. Investors want to know how stable the jurisdiction is.

In terms of talent, we have a team of six people in Bermuda. It is geographically close to certain countries which have great talent. At the same time, with the growth and the snowball effect in the Bermuda life sector, we’re all competing for the same talent, and that has made things a bit more expensive and harder in terms of talent acquisition.

“We look for local talent, but we also have to hire from overseas.”
James Claxton

Mike White: I agree that talent is a straining point. When I joined just over three years ago, I was the first employee and we’re now 26. That is pretty big growth. We have more roles to add, but recruitment can be a challenge when you’ve got a number of companies all going through that growth.

The marketplace has responded pretty well. There are not many small jurisdictions that could accommodate such exponential growth but there’s definitely a bit of a shortfall in on-Island life insurance talent at the moment.

James Claxton: We’re a 250-person shop on-Island and of those we have 14 life actuaries locally. We look for local talent, but we also have to hire from overseas. We found that a lot of people didn’t realise that Bermuda was a credible place to have a career.

There’s probably more we can do if we want to attract from countries that have less knowledge of Bermuda. People are very focused on the US market but we need to educate them about Bermuda.

White: It is obviously a great place to live but I agree that it takes people a while to realise that it’s also a place you can have a great career, do interesting work and make real decisions.

That is changing. We’ve had people join from India, Canada, the UK, and the US. That is largely due to efforts of BILTIR in terms of marketing and with the growth, it’s hard to ignore what’s going on here.

“We need to tell people Bermuda is a viable place to live and work.”
Brad Adderley

Brad Adderley: To attract talent, we need to tell people Bermuda is a viable place to live and work. That it’s a real marketplace with lots of insurers. The more we tell people, the more insurers come here, and the more people pay attention.

There is a fine line between saying how great we are, without getting scrutiny. We know that every time someone does something different, everyone wants to know why. And there’s always a review of why they do that. We need to stop that question, stop any doubts.

Martin Laframboise: I agree on the importance of telling people Bermuda is a viable place to live and work and that it’s important to ensure everyone understands the full transparency of our regime, especially with other international regulators. >>>

“Insurance works because of diversification.”
Mike White

<<< The importance of making sure everyone understands what we do collectively is key to the success of our jurisdiction.

White: Insurance works because of diversification. That’s economically why it works. In terms of what is the differentiator for Bermuda—it’s a place to be able to achieve diversification.

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