Insurance Risk & Capital Bermuda 2022

Welcoming Remarks

Chris Cundy, Managing Editor, InsuranceERM

Opening remarks from BDA

Helen Souza, Business Development Manager, Bermuda Business Development Agency

PANEL DISCUSSION: GEOPOLITICS, INFLATION AND MONETARY POLICY– NAVIGATING A CHALLENGING MACRO ENVIRONMENT AND POSITIONING FOR THE MONTHS AHEAD

Chair:
John Wight, Chairman & retired CEO of BF&M Insurance Group

Panellists:
Andrew Smith, Chief Risk & Sustainability Officer at Conduit Reinsurance
Liz Cunningham, CEO, Somers Re
Marcelo Ramella, Director, Financial Stability Department, Bermuda Monetary Authority (BMA)

C-SUITE PANEL DISCUSSION: CHALLENGES AND OPPORTUNITIES AHEAD FOR BERMUDA’S INSURANCE MARKET

• Bermuda's place in the global picture
• Overview of the competitive environment in Bermuda – what is the outlook for Bermuda?
• OECD Tax Framework – implications to Bermuda and the industry
• Rating agency capital models – potential upcoming changes and impact to Bermuda market
• Where are the key opportunities for Bermudian insurers?/li>
  • Current economic and interest rate environment (inflation & long-term view)
  • ESG/Climate change strategy implementation
  • Innovation in Bermuda

Moderator:
Tony Dardis, Principal and Consulting Actuary, Milliman

Panellists:
Steve Hales, Chief Executive Officer, Resolution Re
Sylvia Oliveira, Chief Executive Officer, Wilton Re
Suzanne Williams-Charles, Director of Policy and Regulation, Corporate Secretary, and Data Privacy Officer, ABIR

HOW DOES CAPITAL MODELING INFORM DECISION MAKING IN THE PRESENT MARKET ENVIRONMENT?

Aon's Capital Advisory team guides (re)insurance senior management on how to not just optimize your capital mix but understand whether your capital and resources are in the right places – identifying the most effective vehicles to access capital in line with your risk appetite and growth strategy.

Speaker:
Marcus Foley, Head of Capital Management, Aon Reinsurance Solutions

PANEL DISCUSSION: CROS IN CONVERSATION

• Expectations on the risk function
• How have expectations on the CRO and the role of the CRO changed?
• How do risk structures differ and compare from company to company
• Comparing mature insurance business risk structures to start-up risk structures – are there lessons to be gleaned from each?
• Key required skill sets
• How does the risk team ensure it is well positioned to manage future risk landscapes?
• Role of the Board
• What are the necessary components for an effective Board?
• Headwinds for the industry
• Which key risk factors have the potential to disrupt and derail?
• Inflation
• What does the return of inflation and potential stagflation mean from a risk perspective?
• Emerging Risk Process
• How are firms rethinking and revising structures and approaches around emerging risks?
• Connecting the dots in the risk identification process

Moderator:
Chris Cundy, Managing Editor, InsuranceERM

Panellists:
Andrew Sooboodoo, CRO, Fortitude Re
David Leach, Group Chief Risk Officer, Monument Re Group
Jan Spindler, Chief Risk Officer, Hannover Re Bermuda
Snjezana Tremblay, Chief Risk and Compliance Officer, Liberty Specialty Markets
Steve Walton, Chief Risk Officer, 777Re

PANEL DISCUSSION: THE FUTURE OF CYBER INSURANCE: GROWTH AND INNOVATION

• Trends shaping the industry
• What do we perceive to be the biggest potential cyber threat?
• How are insurers assessing potential risks to the cyber market from the Russia/Ukraine war and what steps are they taking to mitigate these risks?
• What will the nature of future cyber threats look like and how are insurers mobilising to meet the challenge?
• Monitoring and capturing non-affirmative cyber exposure
• How are firms addressing cyber risk accumulation and aggregation?
• Overcoming challenges surrounding lack of available data
• Growth and innovation:
• How are modelling approaches and product developing and evolving to keep pace with the ever more increasingly challenging and complex nature of cyber threats?
• Utilising the power of AI and big data – opportunities for transformation in the cyber underwriting space
• Where are the opportunities for Bermuda to further affirm its place as a market leader in cyber?

Moderator:
Chris Cundy, Managing Editor, InsuranceERM

Panellists:
Ari Chatterjee, Chief Underwriting Officer, Envelop Risk
George Cole, Head of Bermuda Cyber, Mosaic Insurance

PANEL DISCUSSION: THE RACE IS ON – CAN CAT MODELLING EVOLVE FAST ENOUGH TO KEEP PACE WITH CLIMATE CHANGE?

• Trends in nat cat losses
• Drivers of change
• To what extent is climate change influencing these trends?
• Evolution in exposures (urbanisation, construction, coastlines) & their implications
• How are insurers seeking to improve modelling capabilities for secondary perils?
• Are the existing models predominantly based on historical data still fit for purpose?
• How reliable and useful are they for reflecting the current situation?
• What does the future hold for climate change catastrophe models?
• Use of forward looking & Physical models
• Data and validation challenges

Moderator:
Chris Cundy, Managing Editor, InsuranceERM

Panellists:
Amit Shah, Chief Distribution Officer, Kettle
Liz Harris, VP Research and Development, Ariel Re
Mark Guishard, PhD, FRMetS, CMet | Director, Bermuda Weather Service

PANEL DISCUSSION: BERMUDA'S CLIMATE JOURNEY -PUSHING FORWARD THE CLIMATE AGENDA

• Regulatory frameworks, disclosures and risk management around climate related risks – what are the practical implications for insurers?
• What is the role of financial services regulators in managing climate risk, if any?
• What regulatory deliverables will insurers be expected to provide in the short and medium-term regarding assessment, management and reporting of climate risk
• What does this mean in practical terms for the risk and investment functions?
• What opportunities and risks does this pose for insurers?
• How are companies prioritising initiatives; structuring teams etc to work towards meeting regulatory requirements?
• What should the role and responsibility of both regulator and industry be in forging a future pathway?
• How can industry and regulators work effectively together to find a path that balances regulatory requirements with business pragmatism?
• What are the pertinent issues that the insurance industry should be lobbying on as we try to move towards accepted global standards?
• What might the future regulatory landscape for managing climate risk look like and how should insurers be preparing in order to meet the challenge?
• The path to net zero - managing the risks around a potentially unjust and disorderly transition
• What role can and should insurers play to steward and support transition in the right way and help mitigate against a disorderly transition?
• Which factors will influence the speed and nature of transition?
• How are firms assessing the risk implications of a disorderly transition?
• Who stands to benefit and who stands to lose?
• What impact on society can we expect and how will this impact insurers from both an investment and underwriting perspective?
• Navigating data challenges
• Mitigating for potential litigation

Moderator:
Vincent Huck, Editor, Insurance Asset Risk

Panellists:
Andrew Smith, Chief Risk & Sustainability Officer, Conduit Reinsurance
Andy MacFarlane, Head of Climate, Axa XL
Ricardo Garcia, Managing Director, FIA, MSc, Bermuda Monetary Authority (BMA)

PANEL DISCUSSION: ARE INSURERS BEING PUSHED TOO FAR INTO ALTERNATIVE AND RISKY ASSETS AND HOW DO WE GET COMFORTABLE WITH THE RISK?

• What should be the role of illiquids and risky assets on an insurer's balance sheet?
• Is the trend towards risky assets sustainable and what are the long-term risk profile implications?
• What should the role of the regulator be in ensuring risks from alternatives and illiquids are appropriately evaluated?
• What's hot and what's not? Which are the riskier assets being favoured by the investment teams?
• As the exposure to illiquids and risky assets continues to rise and become more intricate and challenging – do we have the necessary skills, knowledge and tools to sufficiently assess and manage the associated risks?
• What is the role of both the investment team and the risk team in understanding the risk of this asset class? what expectations can and should each have on the other?
• How can risk and investment teams work together to ensure that the right due diligence and risk oversight being done, whilst ensuring that investment opportunities are not missed.
• How can insurers leverage 3rd-party asset managers in a risk-responsive manner?

Moderator:
Vincent Huck, Editor, Insurance Asset Risk

Panellists:
Neha Arora, Head of Risk, Athora Life Re
Piero Falcucci, Co-founder and Chief Risk Officer & Chief Actuary at Triangle Life
Paolo Fiandesio, Chief Risk Officer, Resolution Re

Closing remarks

End of Conference