The Bermuda Business Development Agency (BDA) has launched an initiative to establish and promote the jurisdiction as the world’s climate risk finance capital.
According to the BDA, the initiative, a public-private partnership, aims to make climate risk finance an additional leg on Bermuda’s economic stool – complimentary to its market strengths in (re)insurance, Insurance-Linked Securities and professional services.
“It is a natural fit for Bermuda to become a major base of operations for the global climate risk finance sector,” said BDA CEO Roland Andy Burrows.
“Not only do we already have many of the world’s leading experts on weather-related catastrophes based here in our globally significant property catastrophe reinsurance market, we also have a financial services regulator, in the form of the Bermuda Monetary Authority, which understands the importance of Environmental, Social and Governance (ESG) concerns.”
Burrows said he applauded the Bermuda Government for its many decades of and ongoing commitment to climate and environmental initiatives, adding that “Bermuda has for years punched above its weight, playing a disproportionate role on the world stage for a jurisdiction of our size. By extending our global reinsurance leadership to climate risk finance, Bermuda can again prove to be a collaborative partner to the world’s key markets, a leading member of the worldwide family of responsible communities, playing a major role in delivering solutions to one of the most important challenges of our time.”
According to the BDA, a core team of leaders from government, the BDA and its partners have been preparing for virtual and, in due course, in person engagements to educate capital allocators, entrepreneurs and other key stakeholders about Bermuda’s key competitive advantages in climate risk finance, and the exciting options Bermuda affords to accelerate and support strategies in this sector.
“We will work to bring climate risk finance firms to Bermuda, thereby providing a new landscape of exciting and innovative career opportunities for Bermudians,” BDA chair Stephen Weinstein added.
“While it will be challenging, and can only develop over time, we have the goal of encouraging a new economic pillar of analogous scale to reinsurance. That is, substantial, international market firms, characterised by substantial domestic physical presence employing Bermudians, hiring vendors and service firms, and generating visits and activity in the hospitality and leisure sectors.”