The Bermuda Market Survey 2008
Confronting the downcycle: Seeking opportunity in uncertain times*
Hitting targets in a soft cycle is clearly a huge challenge for CEOs, but the untimely emergence of a series of other road-blocks in the form of the credit crisis, higher inflation and a global business slowdown will make the next 12 months very tough indeed. Bermuda companies have had an enviable reputation for adapting to change in uncertain times. How will they react to a sustained soft market in a time of world economic instability and slowdown?
In the spring of 2008, PricewaterhouseCoopers surveyed a substantial proportion of the Bermuda insurers and reinsurers (comprising both Bermuda domiciled companies as well as subsidiaries of international insurers and reinsurers) to find out how they are addressing their key strategic and operational challenges.
The results of the survey reveal that cycle management and underwriting discipline, new markets, managing the effects of turbulence in the financials markets, geographical markets, and effective monitoring of aggregation of exposure ranked as the Top Five most important issues on CEOs’ agendas for 2008.The results also provide insight into how participants are responding to these challenges.