Bermuda key in supporting innovative coverage: experts

HAMILTON, Bermuda — Captives continue to fill coverage gaps, and the Bermuda market plays a key role in supporting innovative risks, experts said Tuesday at the 2025 Bermuda Captive Conference.

Brink’s Inc. developed a coverage in Bermuda to support U.S. cannabis retailers, Santiago Garcia, Nashville, Tennessee-based senior director-global risk management & insurance at Brink’s, said during a panel session.

Because cannabis is not federally legal in the U.S., most insurers, including Lloyd’s of London, don’t offer coverage, Mr. Garcia said.

Cannabis dispensaries still need secure ways to move large amounts of cash to financial institutions. Brink’s worked with the Bermuda Monetary Authority to structure a program that insures the movement of cash through contracts with state-chartered banks in the U.S., Mr. Garcia said.

“It offered a solution that the commercial insurance market was not capable of offering,” he said.

Brink’s already provides cash management services to these businesses in Canada, where cannabis is legal, through Lloyd’s of London, he said.

A captive provides more consistent coverage to a global network of firms, said Rebecca Jones, chief risk officer of captive insurer Nautilus Indemnity Ltd.

“We support networks of firms all around the globe and they all have different requirements, whether it’s different regulatory requirements or local insurance requirements or foreign exchange differences,” Ms. Jones said.

A captive helps standardize coverage and close gaps, she said.

Companies can use a captive to test and scale coverages that insurers may not have an appetite for, said Aubrey Wagner, director, Harley-Davidson Financial Services.

“We offer a robust portfolio of products to both our dealer network globally as well as motorcycle riders. Some of those opportunities are going to be pretty small from a scale perspective, but there’s demand out there,” Ms. Wagner said.

For example, Harley-Davidson has a certified program globally in the U.S. and in Europe that provides two years of limited warranty coverage in Europe through its captive, she said.

“By taking on the risk, we’re able to have more say in both the coverage and pricing decisions and make those adjustments as needed,” she said.

The Bermuda captive market is synonymous with innovation, said Timae Flood, deputy director, insurance supervision, Bermuda Monetary Authority.

“We are keen to continue to drive and support that innovation coming into the market,” Ms. Flood said.