Xuber, the global insurance software business of Xchanging plc, has revealed the business priorities of Bermuda executives over the next year and the steps companies plan to take to address these, following a survey of senior-level representatives.
The company recently announced plans to strengthen its position in the Bermuda market, using insight drawn from the market survey.
“Our research has uncovered some fascinating insights,” said Chris Baker, managing director of Xuber. “Despite the many challenges faced by the reinsurance industry, including an ongoing soft market, the pressure of alternative capital, mergers and acquisitions, and impending regulatory reform in the form of equivalency with the EU’s Solvency II regime, the survey results show Bermuda is as adaptive and forward-thinking as it has ever been. This market has always been renowned for its innovation, particularly the development of new and smarter risk management products. As such, the dynamics of the Bermuda reinsurance market are changing and reshaping the way reinsurers do business, as well as influencing future business priorities.”
The research highlights 2015 business priorities for those operating in the Bermuda reinsurance market, as well as how the current environment is changing. The findings, outlined in Xuber’s “Challenges and New Choices: Catalysts for Change in the Bermuda Reinsurance Market” report, reveal that having first-class technology is seen as business-critical, and essential to remaining competitive in the years to come. Almost a fifth (19 percent) of executives identified technology as their top business priority in 2015, followed by searching for attractive yields and results (12 percent) and talent (11.5 percent).
Almost half (46 percent) of respondents said analytics enables them to provide underwriting assistance to insurers, and over a third (38 percent) said they are executing a big data program – highlighting the central role of technology within the market. Furthermore, executives agreed that both analytics and big data are likely to be of growing importance for their future success.
“Executives can see that investing in technology will give them the best possible chance to emerge from these challenging conditions in healthy shape,” added Baker. “In recognition of this, and to support the local assumed reinsurance market, we recently strengthened our position in the region with an enhanced product offering.”
Other findings from the survey include:
- The attraction of doing business in Bermuda; 73 percent identified the regulatory and political framework in the region as a draw for businesses, as well as the market’s leading position in the field of insurance-linked securities;
- The impact of alternative capital from insurance-linked securities such as catastrophe bonds;
- The way in which the market is responding to regulatory changes, such as Solvency II;
- The growth of mergers and acquisitions; 32 percent of participants said their business was considering an acquisition in the next two years.
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