Q2 2025 State of the Market: Bermuda Professional Lines
Market Update & Emerging Trends
The Bermuda insurance market continues to demonstrate its strategic relevance across multiple specialty lines, with evolving dynamics shaping both underwriting appetite and client engagement. In Q2, we observed continued but slowing rate reductions in certain product lines. In parallel, increased scrutiny influenced other areas of the market driven by macroeconomic, regulatory, and geopolitical factors. Bermuda remains a preferred jurisdiction for complex risk placements, particularly where its unique advantages in defense cost and indemnification are critical.
Product Line Update
Directors & Officers (D&O)
The D&O market continues its soft trajectory into Q2. Internal pricing pressures are leading to carrier push back on the significant rate decreases seen in 2024. This has contributed to single digit pricing decreases to flat renewals. Although this is the case, there is still oversaturation of capacity in the market which creates an obstacle around pricing.
IPOs/SPACs have begun to minimally surface, but not to the anticipated expectation post Trumps introduction to the office. The continued discussion around trade/tariffs hold material effects on companies cost and bottom line. In addition, national conflicts have also had a negative impact on business operations and performance.
Wage & Hour (W&H)
We continue to see a significant increase in queries for coverage. Educating clients around their risk within this space has been vital to client understanding the true risk they face within their daily operations.
Bermuda remains a highly attractive jurisdiction for W&H placements due to its unique advantages regarding defense costs and indemnification. While California leads in claims activity, carriers are seeing an uptick around labor laws in New York and Massachusetts. Washington State is also one to be mindful of, in regard to their new laws around pay transparency.
The most common claims relate to:
- Rounding
- Misclassification
- Missed Rest and Meal Breaks
- Failure to pay overtime
- Off the clock work
Although these are the key trends, W&H claims tend to be very diverse. The frequency of claims is increasing, and settlement periods are shortening from the 12-24 months previously observed.
Employment Practices Liability (EPL)
Markets have largely flattened, we’ve been witnessing a minimal variance of +/- 5% in pricing, subject to individual risk characteristics and underwriting. Continued pressures around immigration, Diversity, Equity and Inclusion (DEI) initiatives continue to be a trending concern within this space, with Immigration and Customs Enforcement (ICE) sweeps being one of the top topics.
Pay transparency has been a high area of focus with 14 states passing new pay transparency laws. We have seen carriers moving toward limit management to help manage their portfolio risk and potential future claims.
Transactional Liability
Litigation finance was the most significant topic in Q2. Carriers are carefully monitoring the proposed US Tax Bill and its impact on the risk landscape.
Emerging Trends
EPL & AI: There is a growing emphasis on the integration of AI in the workplace – ensuring that there is a human touch when it comes to AI-based employee recruitment, monitoring of data and evaluation technology has been a focus of organizations.
Bermuda Specific Market Updates
Relm have launched two new fintech solutions built for today’s innovators: OMEGAFINTECH and NOVAFINTECH. Each are built with streamlined policies that aim to address coverage gaps.
- OMEGAFINTECH is a tailored solution for fintech companies delivering technology-led financial services. It seamlessly integrates the essential coverages required by businesses operating in a dynamic and constantly evolving financial landscape.
- NOVAFINTECH is a solution for cybersecurity and contractual technology risks faced by fintech innovators who design, manufacture, and supply financial technology products and services without offering financial services themselves.
Notable Wins
We successfully placed a tower of EPL insurance in Bermuda for a leading U.S.-based financial services provider. This nationally recognized firm offers financing solutions and is distinguished by its scale, operational reach, and deep industry expertise. Demonstrating Bermuda’s ability to deliver solutions for sophisticated clients.
Summary
The second quarter provided indications of a market in transition, with pricing beginning to stabilise after a period of significant softening. While capacity remains steady, increased focus on macroeconomic pressures, regulatory changes, and claims trends is shaping underwriting strategy.
Vernae Outerbridge, Head of Professional Lines
Price Forbes Bermuda
Vernae.Outerbridge@priceforbes.com
T: +1 441 707 0099 | M: +1 441 707 0099