Re/insurance & ILS a “bright light” in Bermuda’s economy: Wightman, PwC

Re/insurance & ILS a “bright light” in Bermuda’s economy: Wightman, PwC

Bob Moritz, Global Chairman, PwC commented on the survey results, “While the ongoing pandemic and development of new variations cast a shadow over the year, the high level of CEO optimism we found speaks to the strength and resilience of the worldwide economy and the ability of CEOs to handle through unpredictability.” Through 25 years of the Global CEO Survey, weve seen CEOs deal with obstacles from the bursting of the dot-com bubble to the global monetary crisis. Today, new difficulties with the worldwide pandemic and climate change are checking CEOs like never ever before. Looking ahead, while there will certainly be unpredictable scenarios and difficulties over the next 25 years, we think business constructed on a strong structure of trust will be strengthened and their CEOs best positioned to provide sustained results that contribute to long-lasting success.”

The insurance, reinsurance and insurance-linked securities (ILS) sector has been a “intense light” in Bermudas economy, even through the difficult economic environment of the pandemic, according to Arthur Wightman, Territory leader, PwC Bermuda.Discussing the findings of PwCs most current Global CEO Survey, Wightman kept in mind the value of the re/insurance and ILS sector to Bermuda and the fact it has been a resistant factor to the country, as well as having favorable potential customers ahead due to market hardening.
PwCs most current study discovered that CEOs are a little bit more positive about the economy now than a year earlier, with 77%, anticipating the worldwide economy will enhance in 2022, while just 15% expect worsening conditions.
Showing the phase of the pandemic the world is at, self-confidence has substantially improved considering that 2020, when 53% of CEOs surveyed by PwC in fact stated the financial conditions would become worse.
Possibly notably, CEO optimism about the international economy decreased most in the US, down 18 points to 70%, and was also down in Brazil (dropping 7 indicate 77%), China (down 9 indicate 62%) and Germany (down four points to 76%), which PwC recommends might be due to the fact that inflation and supply chain restraints have actually become more of a concern.
On the other hand, optimism appears highest in India, with 94% of CEOs expecting global development in the coming year, up from 88% in 2021. Optimism is also increasing amongst CEOs in Japan (plus 16 indicate 83%, from 67% in 2015), and is decently higher in the UK (up 5 indicate 82%), PwC stated.
Arthur Wightman commented, “The chief executives who responded to our 25th Annual Global CEO Survey show optimism about ongoing economic resilience, however they are also aware of potential dangers that could impact their organisations over the coming 12 months, consisting of macroeconomic volatility, cyber and health risks. CEOs in financial services, in specific, are worried about cyber hazards.
” While dangers such as environment change and social inequality are further down the list, it is critical not to lose focus on these more long-term issues as they will define what sort of world we reside in and hand down to the next generation. Environmental, financial and social pressures are converging and todays leaders should resolve a brand-new equation.”
Interestingly, re/insurers are one of the most confident industry groups of CEOs, according to PwCs study, with 63% highly confident about development potential customers for their business.
” Optimism in the insurance coverage market shows much better expected financial performance from continued rate solidifying and worldwide financial recovery,” Wightman explained.
Adding that, “The insurance coverage and reinsurance sectors resilience has been a brilliant light in Bermudas economy.
” The continuing hard market and financier cravings for reinsurance is supporting additional capital inflows in 2022. The life reinsurance, slaves, ILS and legacy sectors are all revealing buoyancy.”
Wightman also kept in mind that Bermuda “requires more economic diversification to much better weather such shocks in the future”, referring to the pandemic and how it has impacted the countries tourist sector.
Bob Moritz, Global Chairman, PwC talked about the study results, “While the ongoing pandemic and emergence of new variants cast a shadow over the year, the high level of CEO optimism we discovered speaks with the strength and durability of the international economy and the ability of CEOs to handle through unpredictability. There is absolutely nothing “normal” about the world we are operating in, however we are getting used to it. We are seeing differences in self-confidence amongst nations, and there is no scarcity of obstacles to navigate, but it is motivating that CEOs we consulted with on the entire feel favorable about 2022.
” Through 25 years of the Global CEO Survey, weve seen CEOs deal with difficulties from the bursting of the dot-com bubble to the worldwide financial crisis. Today, new difficulties with the global pandemic and climate change are testing CEOs like never ever before.
As we described earlier today, the Bermuda Stock Exchange (BSX) has reported record ILS and catastrophe bond listings on the exchange at the end of 2021, a clear example of the “intense light” of ILS bringing company chances to the island.

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