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 study results, “While the ongoing pandemic and introduction of brand-new variants cast a shadow over the year, the high level of CEO optimism we discovered speaks to the strength and resilience of the worldwide economy and the capability of CEOs to handle through uncertainty.” Through 25 years of the Global CEO Survey, weve seen CEOs deal with difficulties from the bursting of the dot-com bubble to the international financial crisis. Today, new challenges with the worldwide pandemic and climate modification are evaluating CEOs like never before. Looking ahead, while there will certainly be unpredictable situations and obstacles over the next 25 years, we believe business built on a strong foundation of trust will be fortified and their CEOs best positioned to deliver sustained results that contribute to long-lasting success.”

The insurance coverage, reinsurance and insurance-linked securities (ILS) sector has been a “brilliant 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 latest Global CEO Survey, Wightman kept in mind the significance of the re/insurance and ILS sector to Bermuda and the reality it has actually been a resistant factor to the nation, as well as having positive prospects ahead due to market hardening.
PwCs latest survey discovered that CEOs are a little bit more positive about the economy now than a year ago, with 77%, predicting the worldwide economy will enhance in 2022, while only 15% expect getting worse conditions.
Showing the phase of the pandemic the world is at, confidence has considerably enhanced considering that 2020, when 53% of CEOs surveyed by PwC in fact stated the economic conditions would become worse.
Maybe notably, CEO optimism about the international economy declined most in the US, down 18 indicate 70%, and was also down in Brazil (dropping seven points to 77%), China (down 9 points to 62%) and Germany (down four points to 76%), which PwC suggests could be because inflation and supply chain restrictions have actually become more of a problem.
Conversely, optimism appears highest in India, with 94% of CEOs expecting global growth in the coming year, up from 88% in 2021. Optimism is also increasing among CEOs in Japan (plus 16 indicate 83%, from 67% last year), and is modestly greater in the UK (up five points to 82%), PwC stated.
Arthur Wightman commented, “The presidents who responded to our 25th Annual Global CEO Survey show optimism about ongoing economic durability, but they are also well aware of potential threats that might affect their organisations over the coming 12 months, including macroeconomic volatility, cyber and health risks. CEOs in monetary services, in particular, are concerned about cyber risks.
” While threats such as environment modification and social inequality are further down the list, it is vital not to lose focus on these more long-term issues as they will specify what sort of world we reside in and by far to the next generation. Environmental, societal and financial pressures are converging and todays leaders must resolve a brand-new formula.”
Interestingly, re/insurers are one of the most confident market groups of CEOs, according to PwCs survey, with 63% highly confident about development prospects for their companies.
” Optimism in the insurance coverage market shows much better expected financial efficiency from continued rate solidifying and international financial healing,” Wightman discussed.
Including that, “The insurance coverage and reinsurance sectors durability has been a brilliant light in Bermudas economy.
” The continuing hard market and investor appetite for reinsurance is supporting more capital inflows in 2022. The life reinsurance, slaves, ILS and legacy sectors are all showing buoyancy.”
Wightman likewise kept in mind that Bermuda “requires more economic diversification to better weather condition such shocks in the future”, referring to the pandemic and how it has affected the nations tourist sector.
Bob Moritz, Global Chairman, PwC commented on the study results, “While the continuous pandemic and emergence of new versions cast a shadow over the year, the high level of CEO optimism we discovered talks to the strength and strength of the global economy and the capability of CEOs to handle through uncertainty. There is absolutely nothing “normal” about the world we are working in, however we are getting used to it. We are seeing distinctions in confidence among countries, and there is no shortage of obstacles to navigate, but it is motivating that CEOs we spoke to on the whole feel favorable about 2022.
” 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 challenges with the international pandemic and climate change are testing CEOs like never ever in the past. No matter the problem or year, one constant we see is the fundamental importance of establishing trust. This year, trust appears connected to everything from CEOs self-confidence in growing earnings to whether their organisation has actually made a net-zero commitment. Looking ahead, while there will certainly be unforeseeable circumstances and challenges over the next 25 years, we think business developed on a strong structure of trust will be fortified and their CEOs finest placed to deliver continual results that contribute to long-term success.”
As we discussed previously this week, 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 “brilliant light” of ILS bringing organization chances to the island.

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