Bermuda’s updated tax policies, including the adoption of a minimum 15% corporate tax rate, enabled the creation of DTAs for reinsurers, reducing 2023 tax liabilities. These DTAs, introduced by the Bermuda Ministry of Finance, treat 2023 taxable income as an intangible asset, set to be amortized over 10 to 15 years, offsetting future taxable income.
The report, written by John Taylor (managing director, general and corporate aviation) and Alex Trotter (executive director, general and corporate aviation), said clients approaching renewals at year-end can look to July renewal trends as a guide, given the competitive dynamics observed mid-year.
“Once a project aligned with our low-carbon technology standards is identified, it goes through a rigorous assessment led by our sustainability experts. If it meets our criteria, the premiums we earn from this transaction are then held as investments in certified green bonds. This way, we create a full-circle benefit: we issue bonds that ensure low-carbon project’s success, and we fuel the sustainable transition of the overall economy,” he said.
Price Forbes Bermuda has announced the promotion of Carrie Kelley (pictured above) to chief executive officer.
Kelley, previously the firm’s managing director, will now oversee all operations at Price Forbes Bermuda. She will report to Chris Bonard, CEO of Ardonagh Specialty (Bermuda) Ltd and group president of Price Forbes Re.
Kelley’s career spans over 20 years in the insurance industry, with experience across broking and underwriting in both the Bermuda and US markets.
Prior to joining Price Forbes Bermuda in 2019, she held senior positions with firms such as Barbican Underwriting Bermuda, Bowring Marsh Bermuda, Guy Carpenter Bermuda, and Marsh USA.
Kelley’s appointment is pending regulatory and Bermuda Immigration approval.
“Price Forbes Re has built a tremendous company over the past five years through the hard work and dedication of our employees and the valued partnerships with our clients and carrier partners. We are well positioned for growth, and I look forward to leading the company to future success,” Kelley said.
Bonard said that Kelley’s experience in the Bermuda and US markets makes her well-suited to lead Price Forbes Bermuda forward as the business enters a new phase.
“We are delighted to appoint Carrie as CEO of Price Forbes Bermuda. Our business is in an exciting phase and Carrie’s extensive experience and leadership within the Bermuda and US markets make her the perfect choice to lead us into our next chapter,” he said.
Earlier this month, the firm’s reinsurance arm, Price Forbes Re, also announced the appointment of Colin Kelley as chief commercial officer (CCO), a newly created role within the company.
In his new capacity, Colin Kelley will collaborate with teams across insurance, reinsurance, and capital markets to develop solutions for the firm’s global clients and trading partners.
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Victor Kuk (pictured), head of P&C reinsurance SID, market units P&C reinsurance at Swiss Re, emphasized the evolving role of reinsurance in a more complex risk environment, citing recent global natural disasters that have exposed weaknesses in traditional risk models.
In a statement, Kuk highlighted that the industry must adopt a proactive approach to new and emerging risks to continue supporting economic stability.
Kuk pointed to recent catastrophic events, including Hurricanes Helene and Milton, as well as earthquakes and storms across the Asia-Pacific region, such as Noto, Kyushu, and Super Typhoon Yagi. These disasters have underscored the need for a comprehensive reassessment of how the industry responds to and absorbs large-scale losses.
“The chains of flooding, landslides, and infrastructure damage these events unleashed uncover weaknesses in traditional risk models and the need for a comprehensive reassessment of our industry’s readiness,” Kuk said.
Swiss Re’s research estimates that the natural catastrophe protection gap in the Asia-Pacific region has reached $540 billion over the past decade. Kuk described the traditional role of reinsurers as “shock absorbers,” spreading exposure across geographies and business lines, but noted that the industry’s approach must go beyond that.
“We need to be more proactive in the way we approach emerging risks if we are to deliver on our core mission of improving the region’s resilience for the long term,” he said.
One key area identified by Kuk is the enhancement of modeling expertise. He stressed that historical models do not always account for interactions between risk factors, such as the effects of urbanization on infrastructure in vulnerable coastal regions.
Kuk called for continuous updates to catastrophe models to incorporate factors like economic growth and climate change impacts on weather patterns.
Another focus area for the industry, according to Kuk, is leveraging data more effectively across the insurance value chain. He emphasized the need to gather, pool, and analyze up-to-date data to develop a better understanding of future risk.
“Our structured solutions can support our clients as they navigate a more challenging market environment,” he said, noting that Swiss Re’s offerings can help insurers manage volatility and capital allocation during times of economic and geopolitical uncertainty.
Kuk also highlighted the role of technology, particularly artificial intelligence and machine learning, in upgrading risk assessment models. Swiss Re’s recent acquisition of UK-based Fathom, which specializes in water-related risk models, was a step toward enhancing the precision of natural catastrophe modeling.
“The data Fathom provides adds to our efforts to understand and model the impacts of natural catastrophes like floods,” Kuk said, pointing out how technological advancements are helping insurers anticipate and manage risks more effectively.
Kuk emphasized that partnerships across both public and private sectors are essential to addressing emerging risks. He suggested that reinsurers could work with governments across Asia-Pacific to develop infrastructure away from high-risk areas and invest in cost-effective protective measures.
Additionally, Kuk encouraged collaboration within industry associations to share knowledge on natural catastrophe risks and establish best practices for managing these threats.
“We have witnessed the power of these partnerships when it comes to developing more inclusive insurance products,” he said, noting the benefits of insurance solutions designed to protect vulnerable populations against diverse risk scenarios.
Kuk further stressed the importance of closely collaborating with clients to better understand their risk profiles and operational challenges, which can inform the development of tailored risk management solutions.
Kuk concluded by underlining the need for a collective response to the risks facing the industry. He pointed to platforms like the Singapore International Reinsurance Conference (SIRC) as crucial forums for dialogue and cooperation.
“The risks we face as an industry and a region demand a collective response,” Kuk said, highlighting the importance of continued collaboration and knowledge-sharing within the sector.
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According to maps of the Ukraine-Russia war, about 20% of Ukraine is a war zone. Eric Andersen (pictured), president of global broker Aon, said one thing frustrating Ukrainian businesses is that global insurers and investors tend to see the whole country as a war zone – even though about 80% of the country remains largely peaceful.
“A real problem on the ground in Ukraine is that the local insurance market can’t get war cover,” said Andersen. The New York-based leader was recently in Australia where he spoke to Insurance Business.
“Essentially, the global market kind of walked out of Ukraine during the invasion,” he said. “So if you are trying to build a building, a house or a school, you can’t get cover for materials or anything in construction.”
However, through an agreement with the US International Development Finance Corporation (DFC), he said Aon now provides war insurance in the peaceful areas of Ukraine for construction projects, education facilities, small businesses and agriculture.
“It’s all available in the local economy and the local brokers are selling it and it’s doing exactly what it’s supposed to,” said Andersen.
Before the war, Andersen said Aon was the largest broker in the country.
“We had a chance to sit with President Zelensky during the UN General Assembly a couple of weeks ago,” said Andersen.
He said a focus for Zelenksy is keeping the financial services sector going.
“So that when peace ultimately breaks out, there’s a functioning economy because that’s what he’s worried most about,” said Andersen.
Andersen said this war insurance offering is “a brand-new way for the DFC to disburse money.”
“We said to the DFC that what we really need, rather than doing one off projects,” he said, “is if they can get comfortable supporting one of the local insurers then what you’re doing is you’re supporting the insurance company as it deploys capital into their local market for more risk.”
He said the DFC is “quite particular” about how it lends money.
“We got a little bit lucky in that Fairfax, which is the big Canadian insurer, had a subsidiary on the ground in Ukraine and so we partnered with that local insurer and put them together with the DFC,” said Andersen.
He said together they went through the DFC’s criteria, including what risks they would cover and in what parts of the country.
“Essentially the DFC committed US$50 million in a reinsurance contract behind the balance sheet of a local insurer,” said Andersen. “It was a really good partnership between the public and private entity and it is putting money to work where it’s needed.”
He said this is also “creating more knowledge” among some European countries more accustomed to making aid donations.
“What they really would rather do is help find ways to build and sustain the economy through the local capability, rather than just kind of airdrop in something,” said Andersen. “We’ve been talking to a number of them about either upsizing the program or taking part of the risk themselves, so that when peace breaks out, the DFC can get out and the private sector can jump back in.”
In the same interview with IB, the Aon president said his meetings with clients showed that many businesses around the world are “unsettled” by the major risks they now face and are looking to brokers for more help.
“Big companies and mid-sized companies in Australia, Europe, Asia and North America – they seem more unsettled than they have been in a long time,” Andersen said.
He said this generalised uncertainty is not country specific and he’s seeing it in clients worldwide.
“No matter where you go around the world, they’re all struggling with what they view as a more risky world and they’re looking for advice and they’re looking for capital and trying to figure out what to do,” he said. “I think there’s a lot out there who are unsettled and they’re looking to us [brokers] to be able to give them better insight and tools,” said the Aon leader.
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Global re/insurer MS Amlin has appointed Jo Hine and Andrew Downes (pictured above) as independent non-executive directors.
Hine will serve as chair of the risk and solvency committee, pending regulatory approval. Hine brings a background in finance, capital, and risk, having held senior roles at Hiscox, Tokio Marine Kiln, QBE European Operations, and Aioi Nissay Dowa Europe, a sister company to MS Amlin.
She is also currently an independent non-executive director at Arch Insurance International and a non-executive director and trustee for the charity Publish What You Fund.
Downes joins the board after a 20-year career as an audit partner at Deloitte, where he managed audit and advisory projects for UK and international clients, including multiple Lloyd’s syndicates, brokers, and Lloyd’s itself.
Downes also serves as a non-executive board member and trustee for the Pimlico Toy Library, a children’s charity in Westminster, and has represented the audit profession on the Institute of Chartered Accountants of England & Wales Insurance Committee and Lloyd’s Working Group.
Simon Jeffreys, chair of MS Amlin’s Board, said Hine and Downes both bring a strong understanding of the Lloyd’s market, enhancing the board’s expertise as the company seeks to strengthen its competitive position.
“I am delighted to welcome Jo and Andrew to MS Amlin. Both bring extensive expertise and a deep understanding of the Lloyd’s market, making them valuable additions to the board as we continue to grow our business and strengthen our competitive position,” Jeffreys said.
Last month, the Lloyd’s re/insurer also announced the appointment of Emma Snowdon as head of capital management and investments.
In this role, Snowdon oversees the company’s capital modeling, capital strategy, and investment portfolio management, all aimed at supporting MS Amlin’s long-term growth objectives and financial resilience.
Snowdon is based in London and reports to chief financial officer Jessie Burrows.
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The partnership between ILS Bermuda and Bermuda College, established in 2017 to develop a talent pipeline for Bermuda’s insurance-linked securities (ILS) industry, will continue into 2025.
According to a report by the Royal Gazette, this collaboration aims to enhance students’ knowledge of the ILS, insurance, and reinsurance sectors, providing educational and work experience opportunities that help students build essential industry connections.
Since its inception, the initiative has expanded to include paid summer internships funded by industry organizations exclusively for Bermuda College students.
ILS Bermuda’s year-round educational program includes multiple learning modules. Students attend panels and networking events at the annual ILS Convergence conference and participate in lunch-and-learn sessions where they engage directly with industry professionals.
The program also offers a mentorship component, where mentors assist students with practical skills such as resumé building, LinkedIn profile development, scholarship and internship applications, and interview preparation, as well as other career development queries
LaVonne Smith, ILS Bermuda education vice-chair and senior vice president at Resolute Global Partners, said the organization is focused on providing a structured program that helps Bermuda College students gain relevant industry skills, along with network connections facilitated through mentorship, lunch-and-learn sessions, and internships.
Ali Arouzi, interim vice president of academic affairs at Bermuda College, acknowledged the impact of the initiative, noting that students have benefited from pairing with industry mentors and gaining internship experience. The lunch-and-learn sessions, he said, help students refine their career interests.
ILS Bermuda chairwoman Jo Stanton (pictured above) added that supporting and mentoring young Bermudians is a core part of the organization’s mission.
“We had an excellent group of students participate in our various education initiatives this year and we look forward to them continuing and completing their studies and joining Bermuda’s risk industry in the near future,” Stanton said.
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It wasn’t too long ago that using artificial intelligence (AI) to greatly enhance human ability was the stuff of futuristic speculation.
For global companies like Davies, AI is now an indispensable part of business strategy. The specialist claims and professional services provider recently appointed Paul O’Brien (pictured) as its first group chief AI officer, a move that solidifies its intent to harness the technology for growth.
O’Brien spoke to Insurance Business about the key AI initiatives Davies plans to roll out across its multinational operations.
The biggest challenges chief AI officers like him face? Compliance and meeting customer expectations.
“A key consideration for us is ensuring we fully understand regulatory obligations across different regions,” said O’Brien, who also serves as chief technology officer in global solutions for the organizations.
“In the UK, the frameworks for AI are more advanced, but in North America, there’s significant variation in AI regulations across states.”
Beyond meeting regulatory requirements, O’Brien also highlighted the challenge of aligning its enhanced capabilities with client expectations.
“We have a diverse range of clients, each with a different appetite for AI in their claims process,” he said. “As AI capabilities evolve, it’s important to bring our clients along on the journey, adjusting the use of AI to suit their specific needs.”
In a personal capacity, O’Brien said his main challenge was keeping up with the
rapid shifts in AI. “When we started discussing AI a year ago, the capabilities were very different,” he reflected. “The rate of change and making sure we stay in touch with it, understanding the positives and negatives for the business, is definitely a concern.”
A key example of this was the emergence of AI-generated video and voice, which could soon become widely accessible. “Imagine being on a Teams call a year from now and not knowing if it’s really me or AI-generated in real-time,” O’Brien illustrated.
There are also concerns about AI being misused, particularly in areas like fraud. O’Brien emphasizes the need for businesses to understand both the positive and negative impacts of AI, and to implement appropriate safeguards.
As AI continues to evolve, O’Brien is cautious but optimistic about its role in business. The initial fear that AI would replace human jobs has largely been tempered by the realization that AI is more about augmentation than replacement, though he noted that the current state of AI shows it’s not yet a “finished product.” Challenges like hallucination in large language models show that AI still has limitations.
For now, regulatory frameworks provide the necessary guardrails to ensure that businesses like Davies implement AI in a way that is both innovative and responsible.
“While regulation can be seen as a potential slowdown to innovation, I think that’s actually a real positive,” O’Brien said.
When generative AI started gaining momentum, notably with the rise of ChatGPT in the public sphere, it became clear that AI would change the game for Davies.
“We recognized its significant impact on our operations and saw the need to reassess our AI strategy for the future,” said O’Brien.
As a private equity-backed business undergoing rapid acquisitions, Davies needed to look inward at its AI capabilities, especially considering the wide range of industries it serves, from insurance to consulting to forensic accounting. The early task, according to O’Brien, was simple but crucial: “What are we doing in AI?”
He quickly discovered that various departments within Davies were already engaging with AI to some degree. “We were doing lots of automation and AI-type activities, they just weren’t necessarily all talking to each other,” O’Brien said.
If they were to maximize the potential of AI across the organization, Davies needed to unify their efforts under a centralized strategy. This is how the group chief AI officer role came into being.
“The role grew out of that need to ensure we have a holistic view of everything going on in AI,” O’Brien explained, “and to make sure we’re delivering the best results for our clients and ourselves.”
Davies’ AI strategy is divided into three pillars: compliance and sustainability, business optimization, and product enhancement.
The company is exploring several projects to enhance its products and services:
Davies’ key focus is using AI to augment and empower Davies’ employees and clients, rather than replacing them, and doing so in a safe and compliant manner.
“What excites me most about AI right now is how it’s augmenting, rather than replacing, people,” O’Brien said. “There were fears it would replace jobs. But what we’re seeing is AI helping people work more efficiently. For example, in areas where teams deal with large documents or vast amounts of data, generative AI is ideal for quickly locating specific information, like clauses in legal contracts. It streamlines workflows, making tasks easier and more manageable.
“As employees become more familiar with generative AI tools like ChatGPT in their personal lives, they expect to use similar tools at work. Giving them access to these capabilities in a safe, controlled way is fantastic.”
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The International Union of Marine Insurance (IUMI) released its 2024 analysis of the global marine insurance market through its annual IUMI Stats Report.
This report provides insights into the health of the marine insurance sector, considering factors such as global economic trends, trade, and shipping. Data for the report is sourced from IUMI and various external agencies, with analysis and commentary provided.
In 2023, global marine insurance premiums reached $38.9 billion, marking a 5.9% increase from 2022. Growth was observed across all business lines, driven by a rise in global trade volumes and values, increased vessel values in the hull sector, and higher oil prices boosting activity in the offshore energy industry.
Ocean hull premiums totaled $9.2 billion, a 7.6% increase from the previous year. This growth was attributed to increased vessel activity, higher vessel values, and reduced market capacity.
Despite low claims and favorable loss ratios in all regions, 2023 saw some deterioration in loss ratios, which can be linked to inflation impacting repair costs. Fires on large vessels continued to be a concern.
Cargo insurance premiums rose to $22.1 billion, up 6.2% from the previous year. This increase reflects continued market development and global trade growth. Loss ratios in the cargo sector were positive and started at their lowest levels since 2017.
The offshore energy sector reported $4.6 billion in premiums for 2023, a 4.6% increase. This was driven by rising oil prices and increased activity, though this has not yet led to a significant rise in claims. Loss ratios remained positive but started from a higher point than in previous years, and claims costs are expected to take several years to fully develop.
The report also includes an update on IUMI’s Major Claims Database, which has been collecting data since 2013. Contributions come from 28 national insurance associations, with 6,400 cargo-related observations representing $10.9 billion in losses and 10,300 hull-related observations amounting to $14.6 billion in cumulative losses. The data is analyzed by loss severity, frequency, location, and cause.
IUMI secretary general Lars Lange (pictured above) noted that 2023 saw positive market development across all lines of marine insurance.
“Looking ahead, there are a number of headwinds likely to make themselves known this year and beyond. Geopolitical tensions and the continuing attacks in the Red Sea area and the Russia/Ukraine war are significant. Our transition to a cleaner and greener society will also impact heavily as will the continuing – and often tragic – increase in large vessel fires,” Lange said.
IUMI will continue to monitor the challenges facing the marine insurance sector and collaborate with relevant agencies to ensure underwriters are informed and equipped to meet the evolving needs of global trade.
Lange also acknowledged the work of IUMI’s Facts & Figures Committee and its data partners in compiling the Stats Report and Major Claims Database.
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