(Low Tax) -- Bermuda insurers and reinsurers have paid out USD72.8bn to European Union policyholders over the past 20 years, according to commercial market claims data collected by the island's financial services regulator, the Bermuda Monetary Authority.
Of this USD72.8bn, roughly half (USD36.8bn) was paid to UK customers. The information comes from the Authority's first EU Data Claims Survey, completed in July 2017.
Craig Swan, Managing Director of Supervision at the Authority, said: "The survey results show the significance of the Bermuda (re)insurance market's contribution to Europe over the past two decades. European insurers cede risk to Bermuda, making the cost of buying insurance – particularly property/catastrophe insurance – more affordable to customers in the EU."
From 1997 to 2006, claim payments to the EU totalled around USD16.5bn, of which USD7.4bn was paid to UK policyholders and USD9bn to other EU policyholders.
Between 2007 to 2016, out of a total of approximately USD56.3bn in total claims paid, USD29.4bn was paid to UK policyholders and USD26.9bn to other EU policyholders.
Swan said: "[The] Bermuda Monetary Authority is grateful to the companies that took part in the survey. This is very useful information for the Bermuda market as it demonstrates the value of diversifying risk globally in an increasingly competitive worldwide market."