Reinsurance broking stalwart on how the sector has advanced

With a number {of professional} designations to his identify and many years spent serving the re/insurance coverage market, together with as CEO of each Lloyd’s and non-Lloyd’s brokers within the UK and Bermuda, Bermuda Brokers’ Neil Hitchcock (pictured) has seen the market by way of truthful and foul winds alike.

Having began his profession with a Lloyd’s Syndicate, Hitchcock stated he drastically loved his first foray into the Lloyd’s market, earlier than shifting to Bermuda in 1997 with a job at an MGA writing for Clarendon Insurance coverage Group – which was then acquired by Hannover Re.  As a part of that transaction, he stated, the MGA grew to become a part of Hannover Re and he joined the enterprise’s Bermuda workplace.

“In 2000, I used to be nonetheless at Hannover Re and trying to elevate capital with some companions to arrange a brand new reinsurance firm to put in writing US extra staff’ compensation on a treaty foundation,” he stated. “Again in these pre-9/11 days, we have been trying to elevate about $150 million, which appeared like some huge cash again then!”

Plans have been progressing strongly for the event of the reinsurance firm all year long 2000, with AM Greatest suggesting an A-minus score was achievable. On the finish of 2000, he stated, the crew arrange a dealer in Bermuda which might be wholly owned by the administration and used to put among the enterprise into the proposed reinsurance firm and safe its personal outwards reinsurance.

How 9/11 modified reinsurance broking in Bermuda

The brand new millennium continued into 2001 and was quickly rocked by 9/11 which introduced a flood of recent entrants into the Bermuda market; many bringing north of a billion {dollars} on their stability sheet.  In early 2002, it was clear the corporate wouldn’t entice the extent of capital required to compete or obtain its A-minus score given the brand new market circumstances.  With the plan “again on the shelf” he remained with Hannover Re till 2003 when he first ventured into the reinsurance broking world.

How Hitchcock got here to Bermuda Brokers

Over the course of the subsequent 15-plus years, Hitchcock held numerous positions at among the greatest names in broking together with Tysers and Gallagher, earlier than turning into chief government officer on the specialty re/insurance coverage dealer Skyfront Insurance coverage. In 2022, he stated, he joined the Bermuda-based, specialist reinsurance and insurance coverage middleman Bermuda Brokers Restricted as chief reinsurance officer.

As to why he stayed on the broking facet of the fence, Hitchcock highlighted how a lot he enjoys being a part of the reinsurance distribution ecosystem.  As any individual who enjoys constructing robust relationships throughout the market, he stated, it’s a terrific sector to be a part of and nowhere is that this emphasis on the ability of nice relationships extra clear than on the bottom in Bermuda.

“That’s what’s particularly nice about being with Bermuda Brokers,” he stated. “A lot of the enterprise positioned into Bermuda is dealt with remotely, with abroad brokers visiting the island solely a handful of instances a yr or assembly at abroad conferences.  Whereas by being right here, we will stroll round and see them and join with them that approach.

“Having that private component is absolutely appreciated, as a result of it means you are able to do enterprise face-to-face somewhat than at all times being at arm’s size. Many underwriters who’ve come to Bermuda from a Lloyd’s background, particularly, are used to seeing brokers face-to-face and constructing these relationships with them.”

How is the Bermuda market totally different to the London Market?

Hitchcock famous that the way in which Bermuda is structured is sort of much like the London Market, in that it’s straightforward to get round and see one another. Coming into Bermuda makes it straightforward to see numerous markets in a few days, he stated, which is a key element in making the sector so dynamic. It’s additionally a extremely artistic market with markets extra freely capable of ‘suppose exterior the field’ or take a look at one thing new, which isn’t at all times the case lately in London.  

“Lloyd’s nonetheless works very properly and boasts a whole lot of very proficient people,” he stated, “however there’s little question that it strikes much less rapidly and decisively than the Bermuda market in lots of situations.”

There’s an actual urge for food in Bermuda for the “extraordinary” in addition to conventional dangers, he stated, and for making choices with pace and agility to maintain up with the rising dangers and alternatives going through the sector. There’s additionally quite a lot of flexibility within the Bermuda market, and he highlighted the position the Bermuda regulator has performed in creating these market circumstances.

“The regulator right here could be very efficient,” he stated. “[The BMA] know what they’re doing, they usually’ve come to date within the final 25 years. There’s good collaboration between the regulator and the market right here, which interprets into actual pace to market. There’s additionally a whole lot of nice expertise out there down right here, which I feel is a big a part of why all of it works so properly.”