New BILTIR Report Examines Status of Bermuda's Long-Term Insurance Market
Bermuda International Long Term Insurers and Reinsurers (BILTIR), a trade association comprised of more than 70 (re)insurance companies and service providers in Bermuda, today released a report exploring the history and current state of the long-term insurance industry in Bermuda.
Titled Building for the Long Term: Examining the History, Future, and Importance of Bermuda's Long-Term Insurance Market, the report is informed by a study of 55 life and annuity (re)insurers who are BILTIR members and provides a detailed analysis of regulatory initiatives and investment capital trends in the Bermuda market. Key findings include:
- Closing the pension protection gap: Reporting BILTIR members1 made total benefit payments of $137 billion in the last five years.
- Emphasis on policyholder protection: Among reporting companies, assets held exceed liabilities by $231 billion. These assets ? whether used to reinsure blocks of existing business, enable more direct writing, or finance growth ? reflect a high level of diversification.
- Stable investment capital fuels industry ingenuity via strong returns: 92% of BILTIR's members' rated assets under management are investment-grade and 95% of their bonds, debentures, and structured assets are investment-grade. 77% of assets have additional protection in the form of secured trusts, fund with-held, or MODCO.
The report also details the regulatory environment that the Bermuda Monetary Authority (BMA) has created over the past 55 years to strengthen policyholder protections. Underpinned by a well-capitalized industry, Bermuda's regulatory framework evolves with changing market conditions, making it reflective of the current economic reality and in turn providing a blueprint for dynamic control over an industry.
"As evidenced by this data, Bermuda's insurers and reinsurers hold an important role in protecting policyholders. Strong, evolving regulation and stable capital investments create an environment for excellence within the industry," said Suzanne Williams-Charles, CEO of BILTIR. "Addressing the pension protection gap is a global issue and Bermuda is taking center stage as the location to support the changing industry. This jurisdiction stands as a best practice model for others."
To read the full whitepaper, visit BILTIR's website.
About BILTIR
Bermuda International Long Term Insurers and Reinsurers (BILTIR) represents the long-term insurers and reinsurers in Bermuda. Backed by Bermuda's over 40-year history of providing insurance solutions and at the forefront of the evolving long-term insurance industry, BILTIR represents the policy interests and drives advocacy for the market and its members. BILTIR membership is comprised of more than 70 annuity, life insurance, and reinsurance businesses and servicing companies on the island. To learn more, visit https://www.biltir.bm/.
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1 BILTIR's survey sample of 55 companies represented 94% of the total BILTIR member invested assets of $800 billion, as reported for the 2022 financial period (which excludes non-Bermuda assets of Bermuda consolidated groups). Total assets held by Bermuda-based long-term (re)insurers, which includes intangibles and other non-invested assets, totaled more than $1 trillion at YE22.
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