The Association of Bermuda Insurers and Reinsurers (ABIR) and the Association of British Insurers (ABI) have announced a landmark Memorandum of Understanding (MoU), solidifying their commitment to collaboration in critical areas of the global insurance and reinsurance industry.
This MoU builds upon the already robust working relationship between two of the world’s leading re/insurance hubs, Bermuda and the UK, recognising the vital role they play in the international market. The agreement underscores the importance of cooperation and the sharing of insights on issues crucial to the industry’s future.
Bermuda’s prominent property and casualty re/insurers account for a substantial 44% of capacity in the renowned Lloyd’s of London market. Additionally, they contribute a significant 32% of reinsurance capacity to the UK Government-backed terrorism reinsurer, Pool Re.
Notably, ABIR member companies also bolster the UK economy by employing over 8,500 individuals. Bermuda Monetary Authority data reveals that between 2016 and 2020, Bermuda re/insurers disbursed an impressive $35.2 billion in claims to UK customers.
The ABI, representing over 200 member companies, serves as the public voice of the British insurance and long-term savings sector.
This collaboration encompasses a comprehensive spectrum of six key areas of focus. First and foremost, it seeks to tackle the pressing challenges of climate change and its repercussions on the insurance industry. Secondly, the partnership aims to enhance the industry’s resilience by sharing expertise and strategies for managing and mitigating cyber risks.
Thirdly, a commitment to Diversity, Equity, and Inclusion (DEI) is underlined, with the goal of fostering diversity and inclusivity within the insurance sector. Additionally, collaboration extends to addressing broader industry topics within the domain of insurance and reinsurance. The partnership also emphasises the importance of discussing and coordinating domestic regulations in their respective markets to ensure smooth operations.
Lastly, the collaboration includes a focus on taxation-related concerns, underscoring the significance of regulatory and financial frameworks in the industry’s growth and stability.
The agreement permits the alignment of views and approaches in instances where both associations share concerns that could detrimentally affect cross-border insurance and reinsurance in other markets. Opportunities for joint research projects and executive visits between the two countries are also highlighted in the MoU.
Pina Albo, Chair of ABIR and CEO of Hamilton Insurance Group, Ltd., expressed her enthusiasm for the MoU, emphasising the synergy between Bermuda and UK re/insurance industries and their pivotal role in global insurance markets.
She stated, “Collaboration will help us address the most significant challenges our industry faces, as we strive to meet the world’s evolving risk-management needs.”
Hannah Gurga, Director General of ABI, echoed Albo’s sentiments, highlighting the shared opportunities and challenges faced by re/insurers in both the UK and Bermuda. She emphasised that the agreement would enhance cooperation on critical issues such as climate change, cyber risks, and DEI.
Gurga is scheduled to visit Bermuda next week, where she will be a guest speaker at the ABIR@30 Lunch Forum on September 26 at the Hamilton Princess.
The event, celebrating ABIR’s 30th anniversary, will focus on “Celebrating Three Decades of Leadership and Partnership” and feature prominent figures from the insurance industry, including the Premier of Bermuda, the Florida Insurance Commissioner, and the Chair of the Reinsurance Association of America. A panel discussion will be moderated by Fiona Luck, a Lloyd’s of London Council Nominated Member.
