Bermuda’s international business sector – notably its re/insurance segment – accounts for 29% of the island’s economic activity, and the government is seeking to expand it further through diversification, according to Jason Hayward (pictured above), minister of economy and labor.
Speaking at the Bermuda Risk Summit at the Hamilton Princess & Beach Club, Hayward outlined efforts to grow the sector, including opportunities in parametric insurance and housing infrastructure.
He said Bermuda is positioned to capitalize on a growing demand for parametric insurance in Africa. This type of coverage provides predetermined payouts based on specific trigger events, such as wind speed or rainfall levels, allowing for faster claims payments compared to traditional insurance.
In a report from the Royal Gazette, Hayward said Bermuda’s political and economic stability has become a competitive advantage for attracting global firms amid increasing geopolitical uncertainty. He cited the island’s regulatory framework, legal certainty, and financial infrastructure as factors that make it an attractive jurisdiction for businesses seeking to establish or expand their operations.
During the summit, Hayward also noted that Bermuda’s approach to digital assets has created a regulatory environment that is well-regarded by firms operating in the sector. He said the government aims to not only support climate risk insurance but also provide financial vehicles that direct investment toward climate-related initiatives.
In recent years, Bermuda's re/insurance market has experienced significant developments, particularly in regulatory frameworks and market outlook for 2025.
Notably, effective from March of the previous year, Bermuda implemented updates to its Economic Capital framework. These changes require life insurers to adjust their reserve valuations and capital management strategies, ensuring that Bermuda remains at the forefront of regulatory innovation.
The Bermuda Monetary Authority (BMA) also collaborated closely with industry stakeholders to maintain the sector's competitive edge.
2024 also saw the BMA announcing plans to extend its insurance code of conduct. This initiative aims to integrate environmental, social, and governance (ESG) strategies into the regulatory framework, with a particular focus on climate change and cyber risk supervision.
Outside of its booming re/insurance operations, Hayward also addressed the island’s housing challenges and their impact on business operations. He said the government recognizes that housing availability is an important factor in attracting capital and is working to increase capacity in the City of Hamilton.
Hayward said revisions to city planning regulations aim to allow for more residential housing, encouraging more people to live and work in the area. The government is also continuing public-sector housing development and exploring ways to reduce costs for private developers looking to expand Bermuda’s housing infrastructure.
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