Bermuda (re) insurers paid out $29.3 billion to European Union policyholders and cedants for property and casualty losses and life insurance claims during the five-year period from 2016 to 2020.

This is according to commercial market claims data collected by the Bermuda Monetary Authority in June.

By contrast, the BMA’s 2017 survey showed that during the twenty-year period from 1997 to 2016, Bermuda (re) insurers paid out $35.9 billion to EU policyholders and cedants.

These two surveys, when taken together, show that Bermuda (re) insurers have paid out over $60 billion to EU policyholders and cedants since 1997.

The survey results reflect the growing significance of the Bermuda (re) insurance market’s contribution to the EU over these two and a half decades. The BMA said the results display an increasing trend of annual loss payments to EU policyholders and cedants, with annual payments rising steadily from $4.4 billion in 2016 to $7.2 billion in 2020.

The $29.3 billion total losses paid is comprised of $23.3 billion relating to property and casualty insurance losses and $6 billion attributable to life insurance claims.

Of the $29.3 billion paid in the last five years, roughly 22 per cent was paid to customers in Germany, with other significant claims payments distributed between Ireland, France, Spain, Italy, Belgium, Netherlands and Austria.

Gerald Gakundi, Director, Insurance Supervision, said, “The roughly $60 billion EU losses paid since 1997 by Bermuda (re) insurers demonstrates the key role Bermuda plays in the supply of risk capacity to the EU, and in supporting EU policyholders.

“The ability of EU insurers to cede risk to Bermuda enables diversification of risk globally, making the cost of buying insurance – particularly property and casualty insurance – more affordable to customers living in the EU.”

The loss information includes both direct insurance and reinsurance, with 230 commercial (re) insurance companies responding to the survey.