The Bermuda Monetary Authority (BMA) has noted a “significant growth increase” in the number of organisations using captives for cyber insurance and climate risk as part of their overall management of risk.
In a new report on the state of the Bermuda captive market, the BMA says the sector has proved resilient in the face of recent challenges, and continues to demonstrate its viability and strength in metrics such as premiums written and capital available.
While there are a number of emerging risks for the Bermuda market, the two key risks highlighted by the BMA are cyber (specifically ransomware) and climate.
“Bermuda captives and their parent companies continue to pay close attention to cyber risk as well as the significant increase in the cost cyber insurance in the commercial market,” analysts at the BMA wrote.
“This is once again an example of captives coming to the forefront of risk management discussions and being used more broadly to secure the necessary coverage and effectively manage the cost of organisational risks.”
The Authority has also observed approaches to climate risk that embed this risk into key decision-making processes and awareness throughout…
