Bermuda’s importance on the international stage has never been more crucial, according to John Huff, president and CEO of the Association of Bermuda Insurers and Reinsurers (Abir). In a recent interview with Insurance Day, Huff emphasized the significance of Bermuda’s status as a reciprocal jurisdiction, particularly with the renewal of its status by the US National Association of Insurance Commissioners (NAIC) and its impending alignment with the EU’s Solvency II framework in 2024.
Huff highlighted the importance of Bermuda’s reciprocal jurisdiction status, stating that it allows re/insurers to operate in the US with the same frameworks as US re/insurers, ensuring availability of capital and capacity to keep products affordable in the US market.
Additionally, Huff underscored the regulatory modernization for life and annuity re/insurers, emphasizing the importance of Bermuda’s regulatory reputation in the life and annuity space.
He also mentioned the introduction of the Bermuda Corporate Income Tax Act, which will apply a 15% corporate income tax to multinational enterprise (MNE) groups with annual revenue of €750m ($814.2m) or more, effective from 2025. Huff expressed optimism about Abir members’ ability to adjust to this new tax regime, given the current hard market conditions.
The article also discussed Bermuda’s role in the global re/insurance industry, highlighting the island’s talent-rich workforce and the efforts of Abir to support local employment and educational initiatives. It also recognized the quality of leaders in the industry, as demonstrated by the recent achievements of Abir’s member companies.
Finally, the article mentioned the impact of climate-related risks on Bermuda’s re/insurance market, emphasizing the industry’s history of providing coverage for natural catastrophes and weather-related risks.