Bermuda Still a Hub for Life Insurance Companies
Interest in Bermuda as a life insurance center is strong, according to statements made by Suzanne Williams-Charles, the chief executive of Bermuda International Long-Term Insurers and Reinsurers (Biltir).
Since taking on the role of Biltir CEO in January 2024, Williams-Charles has been contacted monthly by life insurers who are either newly licensed in Bermuda or seeking information about establishing operations there. This contradicts reports in the international press last month that life insurance firms were looking to leave Bermuda in favor of the less strictly regulated Cayman Islands.
In an earnings call last month, Athene’s chief financial officer, Martin Klein, said that businesses based in Bermuda had lost their competitive edge due to stricter regulations. He claimed that some companies were considering relocating to the Cayman Islands, where the regulatory framework is seen as less rigid and more flexible.
“I really do not have any stats on firms leaving, but I can say that Biltir has had constant interest in joining our membership over the last ten months,” Ms. Williams-Charles said. “That suggests that people are still attracted to Bermuda.”
She noted that the Cayman Islands attract similar business to Bermuda in areas such as captive, property and casualty, and life insurance.
“From that perspective, Cayman are our competitors,” Ms. Williams-Charles added. “However, I do not like to compare jurisdictions.”
She explained that because the regulatory systems of Bermuda and the Cayman Islands differ, firms will select the jurisdiction that best suits their individual needs.
Prior to leading Biltir, Ms. Williams-Charles was the director of policy and regulation, corporate secretary, and data privacy officer at the Association of Bermuda Insurers and Reinsurers. Furthermore, she was previously the head of reinsurance compliance at Hiscox Re and spent over a decade at the Bermuda Monetary Authority (BMA), where she concluded her tenure as deputy director of insurance supervision.
“Bermuda has worked hard over the years to ensure that its regulatory framework is internationally recognised,” Ms. Williams-Charles said. Throughout her career, she has witnessed the BMA’s efforts to align the regulatory framework with international standards. The BMA introduced further enhancements that became effective last year.
“In my experience, the changes and the enhancements that they make to regulations are to bring Bermuda in line with international standards,” she said.
Ms. Williams-Charles noted that the life insurance sector on the island has grown significantly in recent years.
“The Bermuda market, especially the long-term sector, has become globally relevant over the last couple of years,” she said. “Because of that growth, it is having global scrutiny, which is not necessarily a negative thing. It should be seen as other jurisdictions, regulators and supervisors doing their job and trying to determine why this change has happened, and to ensure that their policyholders are protected.”
She identified the biggest challenge facing the Bermuda life insurance sector as establishing the appropriate safeguards to protect policyholders without stifling innovation, creativity, and the development of the life insurance industry.
“It would be difficult to determine if Bermuda was perfectly balanced between the two,” she said. “As long as Bermuda continues to acknowledge the importance of it being recognised internationally as a high-quality financial centre, and adjusts and enhances its regulations with that goal in mind, then we should stay competitive.”
