Lloyd’s has joined forces with the Bermuda Monetary Authority (BMA) to develop a framework for closer collaboration on sharing risk expertise between the two global insurance hubs.
The partnership will focus on fostering innovation through the Lloyd’s Lab insurtech programme and improving access to education throughout the two markets.
Bermuda has created a well-oiled infrastructure, with its small capital, Hamilton, being home to the Big Four, notable law firms like Appleby and Conyers, as well as several insurance companies that specialise in captive management.
Chancellor Jeremy Hunt announced in his Autumn Statement last November that the government would consult on a new framework to encourage the establishment of captive insurance companies in the UK, following calls from the industry.
Lloyd’s and the BMA are planning to launch a reinsurance cohort in the Lloyd’s Lab insurtech programme using the expertise of the Bermuda market in the first half of next year with the aim of narrowing the protection gap and addressing emerging risks.
The firms said they were also focused on “educating and inspiring future professionals in the industry”. In-person and virtual Lloyd’s Academy training programmes will be made available to market participants in Bermuda, and Lloyd’s will partner with Bermuda-based experts to roll out Bermuda market courses.
Speaking at the Bermuda Risk Summit in Hamilton, Lloyd’s chief of markets Patrick Tiernan said: “We have a long history of our market participants operating across both Lloyd’s and Bermuda, and I am delighted to announce our joint commitment to further strengthen and enhance our combined capabilities.
“This partnership presents a truly exciting opportunity to bind together the two markets to deliver the best possible solutions for our customers and make meaningful, innovative progress together.”
Craig Swan, chief executive of the BMA, added: “This partnership marks a significant milestone in our efforts to foster collaboration, enhance regulatory and market capabilities and deliver practical solutions that address evolving needs of people and markets.”