Bermuda’s re/insurance industry paid out US$1.1 trillion in claims between 2016 and 2024, with US$700 billion of that amount going to US policyholders.
The figures were shared by Chen Foley, chief claims officer at Arcadian Risk Capital, during a panel at the Future Claims Bermuda event held at the Bermuda Underwater Exploration Institute.
Foley noted that the sector’s payouts reflect a period marked by an increase in both the number and complexity of claims.
Panelists at the event pointed to several drivers behind the surge, including the rise of “nuclear verdicts,” which are jury awards exceeding US$10 million, and the growing influence of social inflation, litigation funding, and heightened expectations around corporate responsibility.
In a report from the Royal Gazette, Nekeisha Cameron of Ark Bermuda said, “The claims today are much more interconnected, much more data driven, and also just much more susceptible to global influences. The biggest thing is the complexity and the pace of claims.”
She observed that the industry is seeing more high-severity, high-frequency events, with jury awards that often surpass what might be expected based on the plaintiff’s damages.
The Association of Bermuda Insurers and Reinsurers (ABIR) reported that in 2024 alone, the sector incurred US$211 billion in gross claims costs. This was accompanied by a 10% year-over-year increase in gross written premium, which reached over US$188 billion.
Panelists also discussed how Bermuda’s insurance community, concentrated within a small geographic area, enables rapid sharing of data and strategies. Sarah Champion, vice president of claims at Chubb Bermuda, said, “I think one of the most beneficial things that I have found in Bermuda is just the collaboration across different companies. I have gained so much insight by just talking to my fellow claims handlers.”
As claims become more numerous and complex, Bermuda’s insurers are adopting technology to automate administrative tasks and free up time for more analytical work.
“That leaves the analytics, the real meat of claims. That gives everyone the time and space to do that, and you don’t have to spend so much of your time on this admin side of things,” Champion said.
Bermuda-based reinsurers are also expanding their exposure to natural disaster risks such as hurricanes, even as reinsurance pricing shows signs of softening. Since 2018, exposure to US hurricanes among leading reinsurers on the island has increased by 58%, reflecting a compound annual growth rate of 6.7%.
However, panelists agreed that technology has its limits. Cameron said, “Artificial intelligence is probably no match for human experience when it comes to claims.” She emphasized the continued importance of empathy and relationships in claims handling, noting that AI cannot replicate the value of direct communication and human judgment.
The discussion also addressed the need for greater oversight of litigation finance. Champion expressed hope for clearer rules around disclosure, saying, “I am hoping that we’ll have more insight as jurisdictions make rules about disclosure of litigation funding when it’s being utilized. I mean, part of the problem is sometimes we have no insight when it’s being used.”
