Bermuda’s strong relationships with clients will help it navigate through the challenges of a tough pricing market for healthcare captives, according to Adam Bates, vice president and pricing actuary at Allied World Assurance Company.
Speaking on a panel dedicated to healthcare captives at the Bermuda Captive Conference, Bates said: “Heightened claim severity is impacting pricing.”
“We are seeing clients start to take higher retentions and/or pay higher premiums and that also speaks to where we are in the insurance cycle.
“I don’t think the current pricing is sustainable. I don’t know what the right answer is but I don’t think we are there today.”
He added: “One of the benefits of the Bermuda marketplace is the longevity of relationships with clients, people have been coming out here for a lot of years and I think those relationships are going to help us navigate through these challenges.”
“We can discuss with clients about where the market is, where pricing is at and what needs to change so things are sustainable for the long term.”
Another panellist, Denise Watkins, senior vice president, Sompo International, commented: “Bermuda has a history of adapting quickly to continue our relevance to our clients and that is something we are looking to do in the future.”