Four leaders of Bermuda market groups quickly issued statements last week to allay any fears that the fallout from the UK’s Brexit vote would hit their market as well.
“In a global economy, Bermuda is affected, like other nations, by such major events,” said Ross Webber, CEO of the Bermuda Business Development Agency (BDA). “We stand ready to deal with myriad eventualities.”
Whatever way the UK’s EU exit unfolds, Webber reminded the agency’s “business partners in the UK that Bermuda continues to offer the same stable, attractive, effective and proven blue-chip international business domicile as it has for the past 70-plus years.”
Bermuda’s stand-alone Solvency II equivalence with the EU and its “progressive path towards Alternative Investment Fund Managers Directive (AIFMD) passport rights in Europe may now appear even more attractive than they were a day ago,” he said.
These regulatory votes of confidence show that Bermuda has a robust regulatory regime, which is not contingent on its relationship with Britain, Webber added.
“Our island enjoys a strong relationship with Brussels nurtured over decades of collaborative efforts by our government, industry and regulator,” he went on to say.
Association of Bermuda Insurers & Reinsurers
The chief of the Association of Bermuda Insurers and Reinsurers (ABIR) also issued a statement to assure re/insurance buyers that it is business as usual on the island.
“Bermuda’s Solvency II equivalence finding by the European Union will serve us well as the UK negotiates its multi-year transition out of the EU,” said Bradley Kading, president and executive director, ABIR.
“The Bermuda equivalency is unaffected by the UK vote,” he said, adding that ABIR “has excellent relationships with both UK and EU policymakers and regulators.”
“ABIR members provide vital insurance capacity that makes UK and EU insurance markets more competitive,” said Kading, adding that ABIR members will be reviewing corporate structures to determine what changes “in their regulatory footprints may be necessary in order to conform with expected changes in European regulatory governance.”
Bermuda Stock Exchange
“The UK referendum in “no way diminishes the unique strengths that have for decades anchored Bermuda as a world-class, well-respected, and robustly regulated financial center,” commented Greg Wojciechowski, CEO of Bermuda Stock Exchange (BSX) and chairman of ILS Bermuda.
“While the world wrestles with the impact of the Brexit vote, Bermuda will continue to offer innovative commercial solutions to clients and industry segments we support, and we welcome future opportunities that may arise,” he added.
The BSX continues to support niche capital market opportunities such the insurance linked securities (ILS) asset class, he said, noting that the BSX is now the global listings leader, with over 70 percent of capacity.
Bermuda Insurance Management Association
“As an economic bloc, the European Union is stronger with the United Kingdom in it, yet respect has to be given to the decision of the British people in [the] referendum,” said Grainne Richmond, president, Bermuda Insurance Management Association (BIMA).
“It will likely take years for a full departure of Britain from the EU. Therefore it remains premature to comment on any effects the vote will have on the captive insurance market. BIMA and our members will be monitoring the process closely in the UK,” Richmond went on to say.
*This story appeared previously in our sister publication Insurance Journal.