Bermuda's long-term insurance industry is helping to close the world's pension protection gap, thanks to the work of its financial services regulatory agency, the Bermuda Monetary Authority.
The gap — the difference between the amount of money people need to live comfortably in retirement and the amount they have saved for retirement — has ballooned to around $1 trillion, according to the Global Federation of Insurance Associations.
The BMA has positioned Bermuda as the risk capital of the world, and as a place for insurers and reinsurers to create retirement savings solutions, by combining support for innovation with stringent oversight.
Extra Protection
The BMA operates with a high level of transparency, maintaining a consistent, open dialogue with companies' boards, officers and risk executives.
This approach allows for a dynamic regulatory environment where companies can innovate within a framework that prioritizes risk management, regulatory compliance, and consumer protection.
BILTIR member companies' assets reflect a high level of diversification. About 77% of the companies' assets have additional layers of protection through mechanisms such as secured trusts.
Affiliated Transactions
The BMA also offers a proactive approach. One of its strategies is to provide a pre-approval review process for transactions involving two affiliates of the same corporate family.
The pre-approval process for affiliated transactions helps the BMA scrutinize the deals and mitigate potential problems before the problems materialize.
Global Relationships
Bermuda has legal and regulatory systems based on common law, with the right of appeal to the United Kingdom's Privacy Council.
