Bermuda Pitches Parametric Reinsurance to Caribbean
Insurers and brokers writing catastrophe cover should track Bermuda's planned parametric insurer class.
Updated on Nov. 4, 2026 in Financial Services
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Bermuda Premier and Finance Minister David Burt promoted the island's reinsurance role at a Commonwealth business forum in Antigua and Barbuda, held alongside the Commonwealth Heads of Government Meeting. The Government did not identify any agreements or investments arising from the forum.
Why it matters
Bermuda's positioning as a global insurance and reinsurance centre gives it a role in helping other jurisdictions manage catastrophe risk, which matters to carriers and brokers looking at where risk-transfer capacity sits. The pitch comes as the Bermuda Monetary Authority plans a new parametric special-purpose insurer class.
The Caribbean Catastrophe Risk Insurance Facility, of which Bermuda is a member, reported record payouts of more than $122 million during the 2024-25 policy year. The Government has not disclosed any deals or investment commitments tied to the forum.
The players
David Burt
Premier and Minister of Finance of Bermuda, overseeing the island's fiscal policy and its promotion as an insurance and reinsurance jurisdiction.
Bermuda Monetary Authority
Bermuda's financial regulator, which licenses and supervises insurers and reinsurers and announced a planned parametric special-purpose insurer class.
Caribbean Catastrophe Risk Insurance Facility
A regional insurance pool providing parametric catastrophe coverage to Caribbean governments, of which Bermuda is a member.
The details
Burt promoted Bermuda's experience as an international re/insurance centre in managing global catastrophe exposure. Bermuda's parametric insurance framework is intended to support fully collateralised parametric risk-transfer business, which pays out on predefined triggers rather than assessed losses. The Bermuda Monetary Authority said in September it planned to introduce a new parametric special-purpose insurer class before the end of the year.
Timeline
September: Bermuda Monetary Authority announces plan for a new parametric special-purpose insurer class.
2024-25 policy year: Caribbean Catastrophe Risk Insurance Facility reports record payouts above $122 million.
November 4, 2026: Burt promotes Bermuda's reinsurance role at the Commonwealth business forum.
Friday: Burt expected to outline a new round of tax-relief measures in the House of Assembly.
Market Landscape
Parametric insurance, which pays predefined amounts when a measurable trigger such as wind speed or rainfall is met, has become a growing tool for Caribbean governments facing hurricane exposure. Bermuda is positioning its regulatory framework to capture a share of that risk-transfer business.
Insurers, reinsurers, and brokers with exposure to Caribbean catastrophe risk should monitor the Bermuda Monetary Authority's parametric insurer class and its timing before the end of the year. Operators in the broader financial services sector should note that new tax-relief measures could alter Bermuda's cost structure for firms domiciled there.
The takeaway
Bermuda is marketing itself as a home for parametric risk-transfer capacity, so carriers and brokers working in Caribbean catastrophe cover should track the forthcoming Bermuda Monetary Authority rules and the Friday tax-relief announcement. Firms weighing Bermuda domicile for new parametric business should wait for the final regulatory text before committing capital.
What happens next
Burt is expected to outline a new round of tax-relief measures in the House of Assembly on Friday, and the Bermuda Monetary Authority plans to introduce its parametric special-purpose insurer class before the end of the year.
Further reading
For broader context on how insurance markets price and transfer risk, see Financial Services.
Source note: This article includes information reported by The Royal Gazette.
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