BMA highlights increased ESG interest

The Bermuda Monetary Authority (BMA) is moving ahead with a string of environmental, social and governance (ESG)-centric updates and guidelines that the captive industry needs to monitor, according to a panel at the Bermuda Captive Conference.

Matthew Carr, partner at Appleby, and Kimberly Rafuse, senior officer, supervision (insurance) at the BMA, took part in the panel discussion, focused on innovative uses of captives.

Carr underlined that Bermuda has not lagged on ESG-related issues, and, driven by an increased level of interest in ESG, the island has a string of initiatives covering this topic.

Rafuse agreed, telling attendees that there had been interest in ESG issues from both investors in the insurance market and captive insurers, particularly in areas like climate change.

As a result, Rafuse said that the BMA had an ESG-centric focus group and was working with modelling companies, as well as surveying the market and taking into account the interest that boards of directors are taking in the topic.

The BMA also has a guidance note on climate risk available on its website for the market to take onboard. There are plans to publish further guidance in 2023.

“We’re continuing to stay abreast of all of the developments in this area at this point, both on the traditional side and the innovative side," said Rafuse.