Friday, 31 October 2014

 



Wednesday, 25 January 2012

Fitch sees Bermuda market as ‘fundamentally resilient’

Fitch Ratings has said that Bermuda-domiciled reinsurers are well positioned to benefit from an improved underwriting and somewhat better pricing environment this year, following a very difficult 2011.



Fitch Ratings said in a report that it sees the Bermuda market as: “Fundamentally resilient, with a strong, albeit diminished, capital position and a proven ability to adapt in meeting capacity needs.”

Market underwriting capacity remains strong, said Fitch, even though overall capital declined slightly in 2011 for the 17 Bermuda-domiciled insurers that Fitch actively follows.

“Moreover, an uncertain earnings outlook puts additional pressure on (re)insurers to preserve existing capital, as Fitch regards maintaining focus on profitable underwriting as the key factor in preserving capital,” the rating agency said.

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It added that regulatory changes are expected to introduce both opportunities and threats, as the island faces competition from other jurisdictions, tax-status scrutiny, and changing collateral rules. Reinsurance demand may be boosted by the need for insurers operating under Solvency II to hold more risk capital. However, Fitch pointed out that with Bermuda seeking Solvency II equivalence, “the country's regulatory framework will, at a minimum, become less flexible, reducing its appeal as the preferred location for start-up companies.”

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Ferma positions risk profession for future success as it marks 40 years

Commercial Risk Europe’s Ben Norris caught up with Ferma president Julia Graham ahead of the federation’s seminar in Brussels as she heads into her second year in office. She explained Ferma’s 40th anniversary celebration plans, discussed the revamped member survey and accompanying inaugural risk report and gave the latest on big projects such as the federation’s certification scheme and push for diversity in risk management. There was also time to take a look back at the history and future direction of the risk management profession.