As the insurance-linked securities (ILS) industry meets in Bermuda over the next few days at the 2025 edition of the ILS Bermuda Convergence event, the organisers believe that the island is “uniquely positioned to host next-generation risk financing solutions” with its deep connectivity between reinsurance and ILS capital markets.
Beginning later today and running until Wednesday, the Convergence 2025 conference is the thirteenth edition of what has become a key meeting point for the Bermuda ILS market and its global constituents and business partners.
The Convergence 2025 conference will see the industry focusing on important themes for insurance-linked securities practitioners and investors, while Bermuda cements its position as the predominant global location for reinsurance market convergence with institutional risk capital.
While capital markets activity to invest directly into catastrophe reinsurance opportunities had been a feature of the Bermuda market since the late 1990’s (hence Artemis launching there back in 1999), it was 2009 when Bermuda first launched the special purpose insurer (SPI) class of vehicle and began its meteoric rise to become the host location to the majority of catastrophe bonds, sidecars, other ILS and collateralised reinsurance structures and deals.
In 2025, the island remains the dominant domicile in the ILS market, still the home of choice to sponsors and investors alike, while the market’s ILS community continues to push the boundaries of ILS in making a growing range of risk-linked investment opportunities available.
When you think about where the next-generation of structural innovation that allows the insurance industry to interface more directly with institutional capital markets may come from, and where the next-gen of ILS investment opportunities may emerge, Bermuda remains front of mind.
The ILS Bermuda not-for-profit that promotes the ILS industry in Bermuda and organises the Convergence events explained, “Supported by a deep (re)insurance talent base, a robust service ecosystem, and a mature capital markets infrastructure, Bermuda is uniquely positioned to host next-generation risk financing solutions, including climate risk, parametric triggers, and hybrid structures.
“Bermuda continues to reinforce its status as the premier global domicile for ILS issuance. The jurisdiction benefits from deep reinsurance industry expertise, a well established ecosystem of service providers, and a broad investor base. Bermuda hosts one of the world’s largest (re)insurance clusters, with over 1,400 firms operating in the sector.
“As innovation reshapes the industry, Bermuda’s infrastructure and established track record help position it as a preferred home for deployment of novel risk transfer strategies, particularly in climate weather related perils and the property/catastrophe risk space.”
Bermuda remains home to the majority of catastrophe bond issuance and listings, while also being the domicile of choice for the majority of innovative ILS structures that appear, meaning there is nowhere better to continue the market’s conversations at this stage of the year.
Convergence 2025 will, over the next three days, see the ILS market community meet to explore a wide range of topics from innovation in structural design and regulation, to the expansion of the ILS market into new classes of risk and the longer-tail of casualty, and how the ILS landscape is being reshaped by global macro forces.
In addition, the Convergence events always feature sessions with a focus on scientific topics, related to catastrophe risk models and climate risk.
Liquidity, transparency and structural alignment are likely to be key topics as well, as the ILS industry continues important discussions it has throughout the year, while given the timing of the event there will no doubt be discussion of the catastrophe bond and private ILS opportunity for investors as we move into the busy issuance and reinsurance renewal season.
As the market continues to evolve, innovating to design the next-generation of ILS solutions continues at pace and meetings such as this week’s Convergence 2025 in Bermuda provide a valuable opportunity to further this ambition.
Artemis will be in attendance this week, so look out for our coverage over the coming days.
A number of Convergence 2025 organisers, sponsors and speakers have provided views on the importance of Bermuda in the ILS market today and some thoughts on this week’s event.
Dominik Hagedorn, Co Founder , Tangency Capital said, “Convergence is a key moment for Tangency to engage with global leaders shaping the future of alternative risk transfer. Bermuda’s role as the epicenter of ILS innovation and capital agility makes it the ideal setting to explore the evolving impact of alternative risk capital. We value Convergence for the connections it fosters and the forward-looking dialogue it drives.”
Greg Cobb, Director / Insurance Solutions, Sage Advisory Services commented, “The maturity of the ILS market now allows our institutional clients ready access to the under researched, undervalued, and underinvested (re)insurance risk premium.
“The quality of attendance and passion of Convergence only reinforces the clear role of Bermuda as the center point of the ILS marketplace.”
Greg Garnier, CEO, HSBC Bermuda added, “As the ILS sector continues to grow in Bermuda, HSBC is thrilled to partner and support the industry through our dedicated re(insurance) expertise in Bermuda, the United States, Europe, Asia and the Middle East.
“As one of the world’s largest banking and financial services organisations in the world, with an international network spanning 57 countries and territories, HSBC understands the importance of connecting global market participants through events such as Convergence 2025. We look forward to being a part of this again this year and wish the organizers and participants every success.”
Michael Alfano, Senior Vice President, Computershare Corporate Trust further stated, “The ILS market had a record $107 billion global capacity at the end of 2024, with a 9.7% compound annual growth rate during the last five years. Bermuda continues to lead the way in insurance-linked securities (ILS) issuance, attracting global capital and helping to drive innovation.
“Computershare provides trusted, scalable services tailored to the market’s evolving needs. Convergence is a key event that connects global market participants to risk transfer opportunities, and we continue to engage with investors and stakeholders who are shaping the future of ILS.”
Alex Mican, Director, Insurance Advisory, Moody’s Insurance Solutions added, “Bermuda is a global hub of innovation for the (re)insurance and ILS market, having created a welcoming environment where solutions required to solve challenges or capitalize on opportunities can grow and thrive. The depth of knowledge, expertise, and experience in Bermuda, and its ability to bring an industry together at events such as Convergence, offers a vital catalyst for innovation in a growing insurance-linked securities (ILS) sector. Moody’s is proud to support Bermuda’s leadership and, through our integrated modelling, ratings, and technology, together we can help unlock new sources of capital and empower investors and sponsors to navigate today’s dynamic risk landscape with confidence.”
Jonathan Reiss, Managing Director, Strategic Risk Solutions (Bermuda) Ltd. also said, “Convergence remains a cornerstone event for the ILS and alternative risk transfer community and continues to be one of the most important forums for advancing dialogue and innovation across the ILS market. As a Silver Sponsor, we’re proud to support an event that brings together global expertise, fresh thinking, and collaborative energy to address the world’s most pressing risk challenges. Bermuda’s leadership in this space, and the spirit of partnership this event embodies, perfectly align with our commitment to helping the industry evolve through insight, transparency, and sustainable growth.”
