Bermuda market update Access to capacity and intellectual firepower
Expanding capabilities
Since Miller launched its Bermuda insurance platform in March 2021, we have continued to expand our capabilities in the territory.
This year, the team is delighted to welcome two new joiners to the Bermuda office: David Porter and Gary Stockley. Both of whom bring a wealth of experience across several classes and business sectors. Having David and Gary on board affords our clientele the ability to work with on-island expertise, specific to Casualty, Cyber, D&O, E&O and Employment Practices Liability Insurance (EPLI) business, further building Miller’s Bermuda offering.
As the legal landscape continues to evolve and insureds are faced with new and evolving issues, having specific and dedicated expertise in Bermuda is key to providing innovative solutions to our clients. Access to the capacity and intellectual firepower within the Bermuda market will greatly benefit our current and future clients.
Q2 Bermuda Insurance Market Update
- The Bermuda insurance market has a focus on North American business. Carriers from the island can easily compliment capacity and solutions from domestic and London markets. The Bermuda market has more than $600M capacity for excess casualty clients and over $200M capacity in the professional liability market for the various coverages including D&O, E&O, EPLI, cyber and Wage & Hour (capacity dependant on specific coverages).
- Bermuda also offers affirmative Punitive Damages coverage within the policy forms: the ability to include Punitive Damages coverage on GL/EL and EPLI policies. The island can also provide Punitive Damages wrap policies for US-based insureds with Bermuda-domiciled sister companies offering standalone coverage.
- Bermuda carriers provide clients with large stable blocks of capacity remaining everlasting in a changing insurance environment, where the underwriting decision makers collaborate closely with senior underwriters on the island.
- The Bermuda market has the ability to write cannabis, crypto exchanges, payment processors and other new innovative fintech risks that require traditional D&O, Cyber and GL coverages.
- Accounts with US or European capacity will now look to bookend larger programs with a Bermuda sister company as they continue to maintain overall max global capacity on preferred placements.
- Many clients have reviewed overall expenditure and insurance limits purchased as economic/social inflation continues to impact loss trends, with more insureds seeking additional limits during 2023.
- Nuclear verdicts continue to make the underwriting of North American business challenging along with auto exposure, concerts & large event exposure, wildfires, New York construction and healthcare/hospitals all being viewed as the higher risk exposed accounts.
- The excess casualty market continues to see a slight 5-10% pricing increase on the balance of renewal business. Cyber rates continue to stabilise after 24 months of hardening and tightening of terms, however, D&O and E&O rates continue to be soft with reductions on all classes within this sector.
