A study by the Bermuda International Long-Term Insurers and Reinsurers industry organisation has highlighted the important role that its member companies play in protecting policyholders.

The resulting report, Building for the Long Term: Examining the History, Future, and Importance of Bermuda’s Long-Term Insurance Market, is informed by a study of 55 life and annuity insurers and reinsurers who are Biltir members and provides a detailed analysis of regulatory initiatives and investment capital trends in the Bermuda market.

The report reveals that reporting Biltir members made total benefit payments of $137 billion in the last five years.

Among reporting companies, assets held exceed liabilities by $231 billion. These assets — whether used to reinsure blocks of existing business, enable more direct writing, or finance growth — reflect a high level of diversification, Biltir said.

Some 92 per cent of Biltir members’ rated assets under management are investment-grade and 95 per cent of their bonds, debentures, and structured assets are investment-grade.

Biltir said 77 per cent of assets have additional protection in the form of secured trusts, fund withheld, or Modco (modified coinsurance).

The report also details the regulatory environment that the Bermuda Monetary Authority, the island’s financial regulator, has created over the past 55 years to strengthen policy holder protections.

Underpinned by a well-capitalised industry, Biltir said, Bermuda’s regulatory framework evolves with changing market conditions, making it reflective of the current economic reality and in turn providing a blueprint for dynamic control over an industry.

Suzanne Williams-Charles, the chief executive of Biltir, said: “As evidenced by this data, Bermuda’s insurers and reinsurers hold an important role in protecting policy holders.

“Strong, evolving regulation and stable capital investments create an environment for excellence within the industry.

“Addressing the pension protection gap is a global issue and Bermuda is taking centre stage as the location to support the changing industry. This jurisdiction stands as a best practice model for others.”

The full white paper is available on the Biltir website.