The absolute lifeblood of the Bermuda Government revenue (valuable needed foreign currency) is derived from International Business (IB) in Bermuda. One of the largest component of IB are the reinsurance companies that specialise in the financial management of risk situations. These companies are globally extraordinary in their scope, innovation, and planning for catastrophic risk. They cover — from tiny Bermuda — 37 percent of the global reinsurance market — a phenomenal statistic. World Wide Rankings*.Our Bermuda domiciled (Re) insurers have earned tremendous respect and impeccable reputations in the global insurance industry. Yet, as much as news of them is released to the press, we, the Bermuda public for the most part, do not notice or understand their business. These companies, one and all, strong and silent mostly, operate on a global plane commenting little outside of industry communications, nor responding to unfiltered comments. Their entire focus is on business and returning a decent profit to their shareholders.It is July. Hurricane season is here — already. A time of intense alert for both homeowners and reinsurer/insurers alike.Just imagine if your home is devastated by a hurricane — we hope that it never happen to any of us, but we are all too familiar with the annual bracing ritual of hurricane survival. Suppose, however, you are now outside after the storm surveying some very significant damage. Further, you have only been able to afford full property & casualty insurance for the last few years, but your anxiety is somewhat alleviated with the knowledge that you did, indeed, fully insure your home for its full replacement cost. Yet, your total premiums for those few years are nowhere near enough to compensate for the restoration of your once lovely home.Can your insurance company pay the full costs of the damage to your home? You worry about that, I know, because over the years readers have expressed those very concerns.The answer to that question is in understanding Bermuda’s (Re) insurance business — the quantifiable, the complex mathematical models and intuitive reasoning that estimate, insure, and manage risk — in all its forms: death, destruction, earthquakes, windstorms, floods, nuclear accidents, tornadoes, tsunamis, crop damage, erosion, property, casualty, satellites, shipping, aircraft, environmental exposures: asbestos, carcinogens, health, crimes such as kidnapping, terrorist onslaughts, financial malfeasance, business and internet security, and others. You think the weather channel is an expert — not compared to these companies! They are the experts in calculated predictions of natural occurrences.Human and natural disasters are so unpredictable and devastating to the ordinary individual, but not to these companies. Their business, too, encompasses providing some measure of security, stabilisation and comfort, yes, comfort in the face of tragedy to those individuals and families affected by unpredictable, often terrible, catastrophic disasters.These concerns and related questions provide the reasons to fully explore our largest industry and a dominant player in global reinsurance /insurance markets.Today, then is the start of the Bermuda Insurance Primer. Once a month, truncated chapters will be published in the Moneywise section. The eventual goal is to provide an easy-to-read primer in eBook format — downloadable for any interested person — on our absolutely premium international business here in Bermuda, the business that supports almost all, I repeat, all of our lifestyles.Learning about our primary economic engine driver, our unique global business, can be an opportunity for insurance education at ground level for us all. We should teach the basic concepts of reinsurance / insurance in secondary schools. All Bermuda residents, not just a few, should be able to provide informational marketing to anyone/anywhere on the general statistics of each of these companies: share value, premiums written, capital contributed, global market participation, amount of insurance claims paid in major disasters such as the billions, literally, for September 11, Katrina, Sandy, and many others. You never know where the next new company will come from.We have received phenomenal information and support from Bradley Kading, President and Executive Director of the Association of Bermuda Insurer and Reinsurers (ABIR) and from other (re) insurer company executives, who shall remain, as they prefer, anonymous. Additional assistance has also arrived from mainland USA from attorney/economist/international business professional friends.A thank you is in order. A few years ago, I started a gratitude project to take place in November every year. There was no award except some recognition, if desired by that person, in this column. Anyone who felt grateful for the contribution that International Business made in their lives, i.e. rents for the family basement, garage, providing jobs, training, increased retail sales, etc was encouraged to pick up the phone and call any of the IB companies based here, just let them know they were valued. And, surprise a few people did and notified me. None wanted public recognition.It isn’t November and I may be the most naive person on earth, but groundswell support starts at the ground level, therefore, if you feel that these businesses are important to our economy, readers, consider doing it again. Pick one company, call them, tell them you appreciate their charitable giving, their presence, and their contribution to our economy. From small beginnings come great things.So, we start at the beginning next month. Some of the insurance related topics we will cover in no particular: kinds of insurance, how does it work, measurement of risk, basic concepts, law of large numbers, reserves:incurred but not reported, statistics and modelling, insurance is a game of what if, other peoples Money, cash float held in trust, liabilities and income, investment management, participants, hedge funds, pensions and so on.Insurance is one of the biggest what if businesses in the world. The statistical law of random numbers is amazing to see. Get your predictions and assumptions right, great profits: get it wrong, lamentable losses ... and the worst case, out of business.I promise that the columns won’t be boring.* Data Kindly provided by ABIR, Association of Bermuda Insurers & Reinsurers.* Martha Harris Myron JP CPA PFS CFP is a Bermudian journalist and a cross border financial planning specialist. Offshore financial perspectives for international citizens living, working, crossing borders, and straddling ponds in the North Atlantic Quadrangle: United States, Canada, United Kingdom, Europe, and the island of Bermuda, the premier international finance centre.President of Pondstraddler Life™ Consultancy.Publications, Presentations and Seminars. www.pondstraddler.com