Editor’s foreword
Backing innovation—again
“If Bermuda can make these plans work, it might be kickstarting the single most important thing ever to hit its economy.”
Exactly where Bermuda’s desire and ability to embrace innovation stemmed from may be lost in the shrouds of history. It is likely that the actions of Fred Reiss in the early 1950s had something to do with it—but it has certainly never rested on its laurels since then.
Those who understand Bermuda’s economy know that in the decades since Reiss it has developed a formidable reputation for its ability to spot and action the next set of innovations around risk transfer—and it has often been instrumental in helping them develop and become a reality.
With the regulator, the Bermuda Monetary Authority, at the heart of such initiatives, Bermuda has fathered new generations of companies to manage liability risks, property-cat exposures, and the transfer of risk into the capital markets (insurance-linked securities [ILS]), and it now sits at the cutting edge of changes in the long-term re/insurance sector, with its growing base of life companies.
What is amazing about Bermuda is that it never stands still. Regulatory changes two years ago are now paying dividends as a new class of collateralised players begins to flourish. The regulatory sandbox, among other things, is encouraging new tech companies to emerge. Why not Bermuda, indeed?
Yet the Island is always looking for the next new thing. As climate change tops the agenda of just about every risk-related company globally, Bermuda is looking to take a lead in this sphere too. And it is doing tangible things to make that difference.
In this issue, Bermuda’s Minister of Finance, the Hon. Curtis Dickinson, MP, discusses in detail the initiatives in place to make the Island a true world leader in climate risk finance. This would help it develop an additional pillar to the economy that will complement, and be supported by, its existing risk transfer industry.
The partnership between government and the Bermuda Business Development Agency (BDA) to launch an initiative aimed at promoting Bermuda as the world’s climate risk finance capital, represents astonishing foresight and ambition.
The aim is to make climate risk finance an additional economic pillar for Bermuda. The government sees it as highly aligned with, and complementary to, its other strengths: re/insurance, ILS and its professional services expertise.
Perhaps there should be no surprise given the Island’s long history of innovation. But climate is a challenge like no other. If Bermuda can make these plans work, it might be kickstarting the single most important thing ever to hit its economy.
Bermuda’s plans should be applauded and supported by the risk transfer industry. May they help both the world and Bermuda do better.
Wyn Jenkins, managing editor, Bermuda:Re+ILS
Image Credit: Unsplash.com / Reilly Durfy, Shutterstock.com / Wojciech Lisinski
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