28 November 2018

AIG chief praises Bermuda's market fundamentals

AIG chief executive and president Brian Duperreault has praised Bermuda’s financial services sector, describing it as a market where “success breeds success”.

Speaking at the Bermuda fintech forum in London this morning, attended by InsuranceERM, industry veteran Duperreault, who was previously chairman and CEO of Bermuda’s Hamilton Insurance Group, said Bermuda’s financial services market is built on “a very solid foundation of very high quality people, regulation and infrastructure”.

He said: “If you are trying to innovate, you want to go to a place where the capital you need will be comfortable. We have the infrastructure [in Bermuda] whether it is legal or accounting or actuarial.”

Asked for advice for start-ups and new entrants, Duperreault said: “There is always the established way of doing things and the incumbents have lots of strengths. They are successful, they usually have size and a market share.”

However, a new entrant has the advantage of not having legacy technology and distribution systems, said Duperreault.

He said: “You have to persevere. You cannot give up and relent and you have to believe in what you are doing. But you better be nimble about it because your idea will not be perfect. You don’t fold the tent, you adjust.”

In February this year, the Bermuda Monetary Authority (BMA) said country’s insurance industry registered a year on-year increase in company registrations across multiple sectors.

The BMA said Bermuda registered a total of 58 new insurers in 2017, ranging from captives and long-term re/insurers to special purpose insurers — compared to 42 in 2016.

In October this year, InsuranceERM held its second Insurance Risk & Capital Bermuda conference at the Rosewood Bermuda.