Political unrest could hit the island’s biggest industry, the Association of Bermuda Insurers and Reinsurers warned yesterday.

An Abir update on the sector’s massive contribution to the economy said that political risks, the high level of debt and spending priorities could affect employment growth in the sector, as well as the tourism industry.

Abir executive director Bradley Kading said: “Sometimes, it’s easy for political leaders here on the island to forget the world is watching, but actions here do affect Bermuda’s global reputation and can influence its international business and tourism sectors — to the detriment of the local economy.”

Among protests this year was a massive demonstration which shut down the House of Assembly for several days in March over proposed changes to immigration policy to increase the number of Bermuda status holders.

Stephen Catlin, executive deputy chairman of XL Catlin and chairman of the Abir board, added there had been a small increase in job numbers in the industry last year, with the majority of posts filled by staff with residency rights in Bermuda.

But he added: “There are headwinds towards further employment growth in Bermuda — such as insurers being under enormous expense stress due to declining profitability in core businesses and political risks on the island, in the US and in the EU, but we are pleased Abir members can report modest employment growth in 2015.”

The main risks outside Bermuda were said to be an increase in regulations restricting access to the reinsurance market due to protectionist policies by other governments, as well as major changes in global tax reporting and disclosure rules driven by the Organisation for Economic Cooperation and Development and the EU.

Abir members employ more than 1,500 staff in Bermuda, with more than two-thirds of them people with rights of residency on the island.

Last year’s figure of 1,534 was 21 higher than in 2014.

Mr Catlin said: “We’re proud of their contribution.”

The two men were speaking as it was revealed that 21 Abir members contributed more than $834 million to the Bermuda economy last year, with additional spin-off benefits.

The figure included travel and entertainment expenses, payment for business services, charitable contributions, real estate costs, including housing allowances, and payroll tax.

Mr Catlin said: “Thanks to the dual success of both the Bermuda Monetary Authority winning regulatory recognition with our two main trading partners — the US and the EU — and the Government keeping pace with evolving international standards on tax transparency, reporting and co-operation, Bermuda is the best place from which a global commercial insurer and reinsurer can do business.

“We’re glad to be here and proud Abir’s members can make such an enormous contribution to the Bermuda economy.”

Abir reckoned members in the survey spent $96 million on construction, real estate, housing and office costs, with a further $64.4 million going on professional services like legal advice, accounting and other consulting services.

More than $26.3 million was spent last year on hotels, airfares, restaurants, taxis and catering.

And the industry contributed nearly $8.2 million to Bermudian charities.