Bermuda is famous worldwide for its giant insurance and reinsurance companies, but the local insurance market, though smaller by dollar volume, is equally vibrant. Insurance companies have been operating on the Island for more than 100 years and are at the centre of the Island’s financial well-being. Today, companies provide a suite of services to the Bermudian and, increasingly, the international markets that includes insurance, pensions, and investments and other financial services.

The Island’s own insurance companies offer a wide range of coverage in the personal lines — health, automobile and home — as well as life and health insurance, individual and group. For companies, local insurers have been servicing group health insurance schemes for almost 60 years, alongside a full range of property/casualty liability coverage. A new-found focus on wellness has placed the spotlight on prevention.

Since new private pension legislation was introduced in 2000, local insurers have met the needs of the mandated private pension scheme in the management and administration of investment funds on behalf of employees’ pensions. Pension plan participants are encouraged to select the style of investments that best suits them. With the Bermuda population aging, like its counterparts around the world, the focus on pensions has increased, and pension fund managers have accordingly achieved a higher profile.

The Bermuda population is financially diverse. Along with a relatively affluent working and middle class, the Island is home to a number of high net-worth individuals. Local insurance companies provide investment services to people at all levels of the social spectrum.

Bermuda’s domestic insurers also serve the global market for financial services, trading on the reputation of the jurisdiction and their successful track records. Bermuda insurers have also been expanding into other jurisdictions, bringing the Bermuda brand to a broader audience.

The Internet has enabled local insurance companies to conduct much of their business online, which helps to keep operating costs down. Companies are updating their websites and information systems. Finally, Bermuda’s insurers are finding new ways to allow their customers to access their financial information online.