Regulatory regime will make Bermuda the Cat bond capital

Bermuda Monetary Authority (BMA) chief executive Matthew Elderfield will today announce new regulations for special purpose insurers, to make Bermuda the world centre for catastrophe (Cat) bonds, the FT reports.

“Bermuda has always been at the centre of insurance innovation and we would expect to be at the forefront of a new wave of capital,” Elderfield said.

Bankers expect to see more institutional investors in Cat bonds.

Identify collateral

The BMA wants greater transparency and disclosure from Cat bond insurers, particularly identifying and valuing collateral.

The new rules will apply to any special purpose vehicle set up in Bermuda, sponsored by an insurer or reinsurer from anywhere in the world.