British and Bermuda markets to work together on tax, regulation & climate

The Association of British Insurers (ABI) and the  Association of Bermuda Insurers and Reinsurers (ABIR) have signed a memorandum of understanding to work together on critical issues of mutual interest including taxation, regulation and climate change.

ABIR and the ABI said the agreement would build on the existing partnership between the UK and Bermuda markets.

“It promotes cooperation and the exchange of views and information on issues of high importance to the industry,” said a statement from ABIR.

The MoU specified six areas in which the two associations will exchange information to promote mutual understanding. In addition to climate change, taxation and domestic regulation of respective markets, these include: cyber risks; diversity, equity and inclusion; and wider insurance and reinsurance matters.

“The agreement allows for coordination of views and approach where there is a shared concern of serious detriment to cross-border insurance and reinsurance in other markets,” said the statement. “Opportunities for the associations to work together in research projects and to build on their relationship through executive visits to each other’s countries also feature in the MoU.”

Bermuda’s leading property and casualty re/insurers represent 44% of capacity in the Lloyd’s of London market and provide 32% of reinsurance capacity for the UK Government-backed terrorism reinsurer, Pool Re.

ABIR member companies also employ more than 8,500 people in the UK, while Bermuda Monetary Authority data shows Bermuda re/insurers paid out $35.2 billion in claims to UK customers between 2016 and 2020 alone.

The ABI is the public voice of the British insurance and long-term savings sector, and represents more than 200 member companies.

Pina Albo, chair of ABIR and CEO of Hamilton Insurance Group, said: “ABIR and our member companies welcome the signing of this MoU, which sets out ways in which our markets can be stronger by working together.

“We recognise that the synergy between the Bermuda and UK re/insurance industries is pivotal to the effective functioning of global insurance markets. Collaboration will help us address the most significant challenges our industry faces, as we strive to meet the world’s evolving risk-management needs.”

ABI director general Hannah Gurga said: “Our long-standing relationship with the ABIR is something the ABI deeply values, and I’m delighted to be cementing this with our memorandum of understanding.

“Re/insurers operating in the UK and Bermuda face many of the same opportunities and challenges; and this agreement will help us to further strengthen our cooperation on issues such as climate, cyber and DEI. I look forward to continuing to work together with Pina and John Huff to deliver even more value to our respective members.”

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