News Analysis: Bermuda’s Reinsurance Companies want to take over Governments’ Insurance Coverages for the Profit Potential therein. To their credit, these Companies are being Pro-Active in seeking Certain “Insurable” areas of coverage currently offered by Nations.
Since the Bermuda Reinsurance Industry is trying to find growth, it is engaging in Due Diligence to find Profitable Opportunities with Acceptable Levels of Risk.
Natural Catastrophe Risk versus Economic Catastrophe Risk are both covered by this Vital Industry. Through increased Technology, additional data is available for the proper assessment of Catastrophes [Natural or Economic]. The recent Typhoon in the Philippines, as an example, suggests that such a Large Event might be covered if there were Insurance [Reinsurance] Policies. Insurance Coverage could aid a stricken area substantially. Economic Catastrophes are becoming more known through Internet Cyber-Attacks, for example, against huge Data Bases, for one. The loss of Pertinent Information could destroy its owner’s Economic Viability. Reinsurance would help against Catastrophic Loss.
When Evaluating the need for Insurance and Reinsurance, Governments, Corporations, and Individuals should remember: “Stormy Days Will Occur”. Reality.
Reference: http://www.royalgazette.com/article/20131114/BUSINESS04/131119876
