Bermuda can lead the world in climate risk, say CEOs – The Royal Gazette
Updated: May 24, 2022 6:29 PM
Bermuda Climate Summit: From left to right, moderator Jeffrey Manson is joined by panelists Lara Mowery, Pina Albo, Tim Neilander and Marc Grandisson on the CEOS, Climate and Capacity panel (Photograph provided)
Bermuda can lead the world in tackling the challenges of climate risk, a leading insurance executive told a sold-out audience today at the inaugural Bermuda Climate Summit.
Speaking about climate risk at the macro level, Hamilton Insurance Group CEO Pina Albo said: “There is an opportunity for Bermuda here to really put their face on the map, to lead on the subject of climate, how to improve resilience, how to mitigate risk, how to underwrite risk and how to make statements about how we run our business.
At Hamilton, she added: “On the underwriting side, I look at what risks are we writing, should we be writing them and how should we be writing them?
“That’s the only aspect, but more importantly, I’m looking at what risks should we actually be targeting to write. There’s a heightened focus and real opportunity in more sustainable and green technology and that’s where we put a lot of emphasis on the underwriting side.
“On the investment side, making sure your investments also make a statement is important and I think something we can do and an opportunity we have.”
Pina Albo, CEO of Hamilton Insurance Group
Ms Albo, Vice President of the Bermuda Association of Insurers and Reinsurers, was speaking at the CEOs, Climate and Capacity panel, moderated by Jeffrey Manson, Head of Global Public Sector Partnerships at RenaissanceRe and Chair of the Committee on the climate at Abir.
The panel also included Marc Grandisson, CEO of Arch Capital Group and Chairman of Abir; Lara Mowery, Global Head of Distribution at Guy Carpenter; and Tim Neilander, Senior Legal Advisor at African Risk Capacity Group.
Marc Grandisson, CEO of Arch Capital Group Ltd (Photograph provided)
Mr. Grandisson said: “Bermuda is really willing to innovate, to think outside the box.
“It’s a very different place, where you can as a broker, as a client, go around a small part of the world and really meet decision makers.”
He added: “We still have that spirit of enterprise and innovation in Bermuda, which I think is very important. It tells anyone who wants to cede or share risk that Bermuda is open for business, always open for business.
“We will try to find a way to make it work as best we can.
“It’s a place where new things can evolve and happen, and a lot of that is down to not just the BMA providing a great regulatory framework, but the people.”
Tim Neilander, Senior Legal Advisor, African Risk Capacity Group
An example of Bermuda’s strength as an innovator was given by Dr Neilander of the African Risk Capacity Group, who established a hybrid mutual insurance company, ARC Insurance Company Limited, in Bermuda in 2013 to serve 35 Member States of the African Union.
He said the CRA is looking for a jurisdiction with a suitable regulatory environment for issuing insurance policies to sovereigns.
Bermuda was chosen and ARC was Africa’s first risk insurance pool, reducing governments’ reliance on external emergency assistance.
Lara Mowery, Global Head of Distribution, Guy Carpenter
Ms Mowery said the ARC story was a great example of an industrial solution produced in Bermuda.
On climate risk, she said innovation must come with some degree of certainty and comfort for participants.
She said: “As we think and focus a bit on capacity in space, how do we get reinsurers to commit and dedicate capacity to climate protection when climate change increases volatility in results?”
Ms Mowery added: ‘The better risk framework you can put around these things as they evolve and grow, the more comfortable the capital will be, to say, ‘Yeah, I’m going to take that risk and I’m gonna invest in the space”.