Bermuda’s insurance market gains reciprocal status with the U.S. as of Jan. 1, 2020, something that industry and business groups there are celebrating as they countdown to the new year.
Reciprocal status will make Bermuda on par with the U.S., allowing its insurers and reinsurers to operate in the market without additional capital requirements. The National Association of Insurance Commissioners granted the new designation, something shared by just two other regions: The EU and UK.
The NAIC also renewed Bermuda’s Qualified Jurisdiction status – something required before achieving Reciprocal Status.
Roland Andy Burrows, CEO of the Bermuda Business Development Agency, said in prepared remarks that the designation affirms “the hard work that takes place to ensure we remain at the forefront of the global” insurance and reinsurance markets.
Stephen Weinstein, Deputy Chair of the BDA, noted that the designation could also help insurance clients and others in the U.S.
“Insureds, intermediaries and communities across the U.S. will only benefit from ensuring level playing field access to Bermuda’s capital and risk management expertise, and from further reducing the costs of exporting risk to the Bermuda market,” he said in prepared remarks.
John Huff, president of the Association of Bermuda Insurers and Reinsurers (ABIR), said in prepared remarks that the new designation “gives Bermuda a competitive edge against other international markets.”
Source: Bermuda Business Development Agency