Bermuda

Market

Access to a leading domicile.

Artex provides access to market capacity through dedicated teams of wholesale insurance and reinsurance specialists worldwide. Long-term industry experience and established market relationships drive our ability to deliver the best pricing, capacity and coverage terms for your clients.

The Bermuda Insurance Market permits access only through authorized Bermuda Market brokers. Artex’s wholesale team possesses deep expertise navigating the Bermuda market’s vast capacity. We provide wholesale access to market capacity for excess insurance, reinsurance and specialty coverages. Our physical presence, market knowledge and underwriting relationships make a substantial difference in securing the most effective placement terms. We stand side by side with retail brokers to fully understand client needs and respond quickly with accurate and actionable solutions. Artex has a long and proven track record of delivering successful results and adding value to the process.

Healthcare Market

Bermuda healthcare captive insurers
As a domicile, Bermuda manages more than $1.3 billion in healthcare-sponsored captive premium. A substantial amount of healthcare-related professional liability is underwritten here, with more than 42% of healthcare captives writing medical malpractice coverage. With such a deep level of expertise and experience, Bermuda proudly serves a variety of large, well-known healthcare systems and esteemed university-sponsored programs.

Healthcare professional liability
Bermuda supports an estimated 25% of the U.S. medical liability market with up to $500 million total capacity, available per risk, including:

  • Hospital professional liability and related coverage for large accounts
    • Hospitals, academic medical centers, pediatric and other specialty medical service facilities
    • Long-term care, including home health and assisted/ independent living providers
    • Managed and accountable care organizations
  • Primary coverage available for physician groups (10 or more)

Bermuda Punitive Damage Wraps

Under civil law, punitive damages are awarded when compensatory damages are deemed an inadequate remedy and where a defendant’s actions can be interpreted as being willful, wanton, reckless or malicious. The unpredictable nature of large punitive damage awards and the accompanying publicity can cause significant damage to a corporation and its value to shareholders.

The unpredictable nature of punitive damage awards is complicated by a lack of uniformity among states as to the determination, treatment and even the insurability of punitive damage awards.

  • Forty-eight states permit punitive damage awards.
  • Twenty-three states disallow insurance from domestic carriers for punitive damages.

To solve this coverage dilemma, several U.S.-based insurers have created “wrap” policies, issued by their Bermuda-based sister companies, that are designed to fill gaps created by inconsistent state regulation. The Bermuda-domiciled companies are able to respond to punitive damage awards in states where their domestic counterparts cannot.

It is important to note that most conventional excess liability placements made in the Bermuda market automatically include punitive damage coverage and therefore a wrap policy is not required.

Coverage highlights
Bermuda carriers will wrap only their domestic counterparts. Artex Intermediaries maintains access to all major carriers that provide punitive wrap coverage.

  • The wrap policy does not increase the total limits available to the insured, but rather fills the exclusionary gaps of the domestic policy.
  • The domestic policy should cover punitive damages in all states where it is legally possible to do so.
  • The policy can be written on a claims-made or occurrence basis to match the wrapped insurance policy.
  • The policy can drop down, but only to the same extent that the wrapped policy drops down.
  • Among the liability policies that can be wrapped are General, Products, Employment Practices, Healthcare Professional and Directors & Officers.

Punitive damages are unpredictable. Domestic coverage gaps and statute variances make these risks even more difficult to manage, especially for large multi-jurisdictional corporations. Artex can provide you with the solution.

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