The Insurance Industry in Bermuda, Key Trends and Opportunities to 2018

Published: Aug, 2014 | Pages: 146 | Publisher: Timetric
Industry: Insurance | Report Format: Electronic (PDF)

Synopsis
The report provides in-depth industry analysis, information and insights of the insurance industry in Bermuda, including:
The Bermudian insurance industry's growth prospects by insurance segments and categories
The competitive landscape in the Bermudian insurance industry
The current trends and drivers of the Bermudian insurance industry
Challenges facing the Bermudian insurance industry
Detailed regulatory framework of the Bermudian insurance industry

Summary
Despite continued low investment yields and moderate economic growth in Europe and the US, Bermuda's insurance industry continued to thrive in 2013. Gross written premium increased at a rate of 7.4% from 2009 to 2013. The growth was primarily driven by low losses from catastrophes and proper reserve development in 2012. As a result, leading industry participants recorded a significant improvement in combined ratio, depicting strong underwriting performance which in turn supported their risk-adjusted capitalization.
Scope
This report provides a comprehensive analysis of the insurance industry in Bermuda:
It provides historical values for the Bermudian insurance industry for the report's 2009-2013 review period and forecast figures for the 2013-2018 forecast period.
It offers a detailed analysis of the key segments and categories in the Bermudian insurance industry, along with forecasts until 2018.
It covers an exhaustive list of parameters, including written premium, incurred loss, loss ratio, commissions and expenses, combined ratio, total assets, total investment income and retentions.
It profiles the top insurance companies in Bermuda, and outlines the key regulations affecting them.
Reason To Buy
Make strategic business decisions using in-depth historic and forecast industry data related to the Bermudian insurance industry and each segment within it.
Understand the demand-side dynamics, key trends and growth opportunities within the Bermudian insurance industry.
Assess the competitive dynamics in the Bermudian insurance industry.
Identify the growth opportunities and market dynamics within key segments.
Gain insights into key regulations governing the Bermudian insurance industry and its impact on companies and the industry's future.
Key Highlights
A low regulatory burden, attractive tax environment and solid infrastructure have been key drivers for the growth of insurance, and also for the rise in the number of international companies in Bermuda.
The number of new insurers rose by 71% in 2013 over 2012, while the overall number of market participants fell from 1,209 in 2012 to 1,206 in 2013.
Bermuda has evolved as an offshore financial center, due to its minimal and liberal regulatory standards for businesses.
Growing competition is likely to have an adverse impact on the profitability of insurers and reinsurers in 2014 and 2015, with several operators exhibiting competitive underwriting practices.
During the review period, the frequency and magnitude of catastrophes increased globally, leading to increased losses and placing greater pressure on reinsurers.

 1 Executive Summary
2 Introduction
2.1 What is this Report About?
2.2 Definitions
2.3 Methodology
3 Bermudian Insurance Industry Overview
3.1 Bermudian Insurance Industry
3.2 Key Industry Trends and Drivers
3.3 Challenges
4 Industry Segmentation
4.1 Life Insurance
4.2 Individual Life Insurance
4.3 Life Insurance by Category
4.3.1 Individual whole life insurance
4.4 Non-Life Insurance
4.4.1 Property insurance
4.4.2 Liability insurance
4.4.3 Marine, aviation and transit insurance
4.5 Persol Accident and Health Insurance
4.6 Reinsurance
5 Governce, Risk and Compliance
5.1 Legislation Overview and Historical Evolution
5.2 Legislation and Market Practice by Type of Insurance
5.2.1 Life insurance
5.2.2 Property insurance
5.2.3 Motor insurance
5.2.4 Marine, aviation and transit insurance
5.2.5 Persol accident and health insurance
5.3 Compulsory Insurance
5.3.1 Motor third-party liability insurance
5.3.2 Merchant shipping insurance
5.3.3 Workmen's compensation insurance
5.3.4 Health insurance
5.4 Supervision and Control
5.4.1 Intertiol Association of Insurance Supervisors
5.4.2 Bermuda Monetary Authority (BMA)
5.5 Non-Admitted Insurance Regulations
5.5.1 Overview
5.5.2 Intermediaries
5.5.3 Market practices
5.5.4 Fines and pelties
5.6 Company Registration and Operations
5.6.1 Types of insurance organization
5.6.2 Establishing a local company
5.6.3 Foreign ownership
5.6.4 Types of license
5.6.5 Capital requirements
5.6.6 Solvency margins
5.6.7 Reserve requirements
5.6.8 Investment regulations
5.6.9 Statutory return requirements
5.6.10 Fee structure
5.7 Taxation
5.7.1 Insurance premium or policy taxation
5.7.2 Withholding taxes on premium paid overseas
5.7.3 Corporate tax
5.7.4 VAT
5.7.5 Captives
5.8 Legal System
5.8.1 Introduction
5.8.2 Access to court
5.8.3 Altertive dispute resolution (ADR)
6 Competitive Landscape
6.1 Overview
6.2 Leading Companies
6.2.1 Ace Bermuda Insurance Ltd - company overview
6.2.2 XL Group - company overview
6.2.3 PartnerRe Ltd - company overview
6.2.4 Everest Reinsurance (Bermuda) Ltd - company overview
6.2.5 Catlin Group Ltd - company overview
6.2.6 Axis Capital Holdings Ltd - company overview
6.2.7 Arch Insurance (Bermuda) - company overview
6.2.8 Allied World Assurance Company Holdings, AG - company overview
6.2.9 Endurance Specialty Holdings Ltd - company overview
6.2.10 Hiscox Ltd - company overview
7 Economic Indicators
7.1 GDP at Constant Prices (US$)
7.2 GDP per Capita at Current Prices (US$)
7.3 GDP at Current Prices (US$)
7.4 Construction Output at Current Prices (US$)
7.5 Arable Land
7.6 Total Population
8 Appendix
8.1 Methodology
8.2 Contact Timetric
8.3 About Timetric
8.4 Timetric's Services
8.5 Disclaimer


List of Tables
Table 1: Insurance Industry Definitions 10
Table 2: Bermudian Insurance - Gross Written Premium by Segment (BMD Billion), 2009-2013 15
Table 3: Bermudian Insurance - Gross Written Premium by Segment (US$ Billion), 2009-2013 15
Table 4: Bermudian Insurance - Gross Written Premium by Segment (BMD Billion), 2013-2018 16
Table 5: Bermudian Insurance - Gross Written Premium by Segment (US$ Billion), 2013-2018 16
Table 6: Bermudian Insurance - Segmentation by Gross Written Premium (Percentage Share), 2009-2018 18
Table 7: Bermudian Insurance - Direct Written Premium by Segment (BMD Billion), 2009-2013 19
Table 8: Bermudian Insurance - Direct Written Premium by Segment (US$ Billion), 2009-2013 19
Table 9: Bermudian Insurance - Direct Written Premium by Segment (BMD Billion), 2013-2018 20
Table 10: Bermudian Insurance - Direct Written Premium by Segment (US$ Billion), 2013-2018 20
Table 11: Bermudian Insurance - Segmentation by Direct Written Premium (Percentage Share), 2009-2018 22
Table 12: Bermudian Life Insurance - Gross Written Premium (BMD Billion), 2009-2013 26
Table 13: Bermudian Life Insurance - Gross Written Premium (BMD Billion), 2013-2018 27
Table 14: Bermudian Life Insurance - Direct Written Premium (BMD Billion), 2009-2013 28
Table 15: Bermudian Life Insurance - Direct Written Premium (BMD Billion), 2013-2018 29
Table 16: Bermudian Individual Life Insurance - Gross Written Premium by Category (BMD Billion), 2009-2013 30
Table 17: Bermudian Individual Life Insurance - Gross Written Premium by Category (US$ Billion), 2009-2013 30
Table 18: Bermudian Individual Life Insurance - Gross Written Premium by Category (BMD Billion), 2013-2018 31
Table 19: Bermudian Individual Life Insurance - Gross Written Premium by Category (US$ Billion), 2013-2018 31
Table 20: Bermudian Individual Life Insurance - Direct Written Premium by Category (BMD Billion), 2009-2013 32
Table 21: Bermudian Individual Life Insurance - Direct Written Premium by Category (US$ Billion), 2009-2013 32
Table 22: Bermudian Individual Life Insurance - Direct Written Premium by Category (BMD Billion), 2013-2018 33
Table 23: Bermudian Individual Life Insurance - Direct Written Premium by Category (US$ Billion), 2013-2018 33
Table 24: Bermudian Life Insurance - Paid Claims (BMD Billion), 2009-2013 34
Table 25: Bermudian Life Insurance - Paid Claims (BMD Billion), 2013-2018 35
Table 26: Bermudian Life Insurance - Incurred Loss (BMD Billion), 2009-2013 36
Table 27: Bermudian Life Insurance - Incurred Loss (BMD Billion), 2013-2018 37
Table 28: Bermudian Life Insurance - Loss Ratio (%), 2009-2013 38
Table 29: Bermudian Life Insurance - Loss Ratio (%), 2013-2018 39
Table 30: Bermudian Life Insurance - Combined Ratio (%), 2009-2013 40
Table 31: Bermudian Life Insurance - Combined Ratio (%), 2013-2018 41
Table 32: Bermudian Life Insurance - Total Assets (BMD Billion), 2009-2013 42
Table 33: Bermudian Life Insurance - Total Assets (BMD Billion), 2013-2018 43
Table 34: Bermudian Life Insurance - Total Investment Income (BMD Billion), 2009-2013 44
Table 35: Bermudian Life Insurance - Total Investment Income (BMD Billion), 2013-2018 45
Table 36: Bermudian Life Insurance - Retentions (BMD Billion), 2009-2013 46
Table 37: Bermudian Life Insurance - Retentions (BMD Billion), 2013-2018 47
Table 38: Bermudian Individual Whole Life Insurance - Gross Written Premium (BMD Billion), 2009-2013 49
Table 39: Bermudian Individual Whole Life Insurance - Gross Written Premium (BMD Billion), 2013-2018 50
Table 40: Bermudian Non-Life Insurance - Gross Written Premium by Category (BMD Billion), 2009-2013 51
Table 41: Bermudian Non-Life Insurance - Gross Written Premium by Category (US$ Billion), 2009-2013 51
Table 42: Bermudian Non-Life Insurance - Gross Written Premium by Category (BMD Billion), 2013-2018 52
Table 43: Bermudian Non-Life Insurance - Gross Written Premium by Category (US$ Billion), 2013-2018 52
Table 44: Bermudian Non-Life Insurance - Direct Written Premium by Category (BMD Billion), 2009-2013 55
Table 45: Bermudian Non-Life Insurance - Direct Written Premium by Category (US$ Billion), 2009-2013 55
Table 46: Bermudian Non-Life Insurance - Direct Written Premium by Category (BMD Billion), 2013-2018 56
Table 47: Bermudian Non-Life Insurance - Direct Written Premium by Category (US$ Billion), 2013-2018 56
Table 48: Bermudian Non-Life Insurance - Paid Claims (BMD Billion), 2009-2013 59
Table 49: Bermudian Non-Life Insurance - Paid Claims (BMD Billion), 2013-2018 60
Table 50: Bermudian Non-Life Insurance - Incurred Loss (BMD Billion), 2009-2013 61
Table 51: Bermudian Non-Life Insurance - Incurred Loss (BMD Billion), 2013-2018 62
Table 52: Bermudian Non-Life Insurance - Loss Ratio (%), 2009-2013 63
Table 53: Bermudian Non-Life Insurance - Loss Ratio (%), 2013-2018 64
Table 54: Bermudian Non-Life Insurance - Combined Ratio (%), 2009-2013 65
Table 55: Bermudian Non-Life Insurance - Combined Ratio (%), 2013-2018 66
Table 56: Bermudian Non-Life Insurance - Total Assets (BMD Billion), 2009-2013 67
Table 57: Bermudian Non-Life Insurance - Total Assets (BMD Billion), 2013-2018 68
Table 58: Bermudian Non-Life Insurance - Retentions (BMD Billion), 2009-2013 69
Table 59: Bermudian Non-Life Insurance - Retentions (BMD Billion), 2013-2018 70
Table 60: Bermudian Property Insurance - Gross Written Premium (BMD Billion), 2009-2013 71
Table 61: Bermudian Property Insurance - Gross Written Premium (BMD Billion), 2013-2018 72
Table 62: Bermudian Liability Insurance - Gross Written Premium (BMD Billion), 2009-2013 73
Table 63: Bermudian Liability Insurance - Gross Written Premium (BMD Billion), 2013-2018 74
Table 64: Bermudian Marine, Aviation and Transit Insurance - Gross Written Premium (BMD Billion), 2009-2013 75
Table 65: Bermudian Marine, Aviation and Transit Insurance - Gross Written Premium (BMD Billion), 2013-2018 76
Table 66: Bermudian Persol Accident and Health Insurance - Gross Premium (BMD Billion), 2009-2013 77
Table 67: Bermudian Persol Accident and Health Insurance - Gross Premium (BMD Billion), 2013-2018 78
Table 68: Bermudian Persol Accident and Health Insurance - Direct Premium (BMD Billion), 2009-2013 79
Table 69: Bermudian Persol Accident and Health Insurance - Direct Premium (BMD Billion), 2013-2018 80
Table 70: Bermudian Persol Accident and Health Insurance - Paid Claim (BMD Billion), 2009-2013 81
Table 71: Bermudian Persol Accident and Health Insurance - Paid Claim (BMD Billion), 2013-2018 82
Table 72: Bermudian Persol Accident and Health Insurance - Incurred Loss (BMD Billion), 2009-2013 83
Table 73: Bermudian Persol Accident and Health Insurance - Incurred Loss (BMD Billion), 2013-2018 84
Table 74: Bermudian Persol Accident and Health Insurance - Loss Ratio (%), 2009-2013 85
Table 75: Bermudian Persol Accident and Health Insurance - Loss Ratio (%), 2013-2018 86
Table 76: Bermudian Persol Accident and Health Insurance - Combined Ratio (%), 2009-2013 87
Table 77: Bermudian Persol Accident and Health Insurance - Combined Ratio (%), 2013-2018 88
Table 78: Bermudian Persol Accident and Health Insurance - Total Assets (BMD Billion), 2009-2013 89
Table 79: Bermudian Persol Accident and Health Insurance - Total Assets (BMD Billion), 2013-2018 90
Table 80: Bermudian Persol Accident and Health Insurance - Retentions (BMD Billion), 2009-2013 91
Table 81: Bermudian Persol Accident and Health Insurance - Retentions (BMD Billion), 2013-2018 92
Table 82: Bermudian Reinsurance - Ceded by Insurance Segment (BMD Billion), 2009-2013 93
Table 83: Bermudian Reinsurance - Ceded by Insurance Segment (US$ Billion), 2009-2013 93
Table 84: Bermudian Reinsurance - Ceded by Insurance Segment (BMD Billion), 2013-2018 94
Table 85: Bermudian Reinsurance - Ceded by Insurance Segment (US$ Billion), 2013-2018 94
Table 86: Bermudian Non-Life Insurance - Percentage of Reinsurance Ceded (%), 2009-2013 96
Table 87: Bermudian Non-Life Insurance - Percentage of Reinsurance Ceded (%), 2013-2018 97
Table 88: Bermudian Persol Accident and Health Insurance - Percentage of Reinsurance Ceded (%), 2009-2013 98
Table 89: Bermudian Persol Accident and Health Insurance - Percentage of Reinsurance Ceded (%), 2013-2018 99
Table 90: Bermuda - Life Insurance Regulatory Framework 102
Table 91: Bermuda - Property Insurance Regulatory Framework 104
Table 92: Bermuda - Motor Insurance Regulatory Framework 106
Table 93: Bermudian Insurance - Market Shares (%) of Key Insurers and reinsurers, 2013 125
Table 94: Registered Bermudian Insurance and Reinsurance Companies, 2013 126
Table 95: Bermudian Insurance - Number of Licensed Companies by Region in 2013 126
Table 96: Bermudian Insurance - Number of Licenses by Company Type in 2013 127
Table 97: Ace Bermuda Insurance Ltd, Main Products 128
Table 98: Ace Bermuda Insurance Ltd, Key Employees 128
Table 99: XL Group, Main Products 129
Table 100: XL Group, Key Employees 129
Table 101: PartnerRe Ltd, Main Products 130
Table 102: PartnerRe Ltd, Key Employees 130
Table 103: Everest Reinsurance (Bermuda) Ltd, Main Products 131
Table 104: Everest Reinsurance (Bermuda) Ltd, Key Employees 131
Table 105: Catlin Group Ltd, Main Products 132
Table 106: Catlin Group Ltd, Key Employees 132
Table 107: Axis Capital Holdings Ltd, Main Products 133
Table 108: Axis Capital Holdings Ltd, Key Employees 133
Table 109: Arch Insurance (Bermuda), Main Products 134
Table 110: Arch Insurance (Bermuda), Key Employees 134
Table 111: Allied World Assurance Company Holdings, AG, Main Products 135
Table 112: Allied World Assurance Company Holdings, AG, Key Employees 135
Table 113: Endurance Specialty Holdings Ltd, Main Products 136
Table 114: Endurance Specialty Holdings Ltd, Key Employees 136
Table 115: Hiscox Ltd, Main Products 137
Table 116: Hiscox Ltd, Key Employees 137