“I think the biggest challenge for the market over the past three to four years was the fact that it faced a number of issues which all seemed to come together,” he explains. “We have the political risk issues on Bermuda itself, the United States taxation issue and the challenge posed by the onset of new European regulation.

“Normally the market would expect to have a single major issue that it needs to address but we faced three significant issues and therefore the past three year were defined by the way in which Bermuda could deliver the solutions.”

Mr Kading adds: “In terms of the political risk that was forecast with the change of government in Bermuda, our Premier Pauline Cox has worked in the international insurance and risk market and understands it.

“She has travelled and spoken at international conferences and as a risk centre we have a very supportive government.

“The changes to the potential make up in the US congress have seen a move away from the Neal Bill and the issues surrounding taxation of premiums which are ceded offshore.

“The Republican party in the House is of a mind that they do not believe the way forward is to look to increase tax revenues rather they would like to see a reduction in spending, and therefore the USA political risk looks to be diminished.

“The European regulatory challenge is also being met. We had a very senior delegation from the European Union including Karel van Hulle visit the island last year for a seminar on the issue and over 200 attended. The Bermuda Monetary authority held detailed discussions with the delegation and had a very proactive meeting.”

As for the physical market Mr Kading said there had been much made of the decision by some underwriters and brokers to redomicile away from Bermuda but while the brass plates may have moved the operations had not.

“There have been some re-domiciling in the past year but those firms have kept the operations here and the market is in good shape,” he explained. “The Bermuda market is also looking to play an increasing role in the global industry as therefore you would expect Bermuda firms to look to establish operations in other major markets around the world.”

There was significant capacity in the market and Mr Kading believes that Bermuda has already positioned itself to take full advantage of any market changing event or series of events which will drive new capacity into the reinsurance sector.

“Bermuda has established laws on the formation of sidecars and special purpose vehicles which enable investors to access such facilities quickly and efficiently in future should there be a demand to do so,” he adds.

As with every other major centre the issue of talent remains core to its future and Mr Kading says Bermuda is reaping the benefit of its investment in the island’s young talent over the years.

“Currently it is estimated that around 66% of the employees in the re/insurance market are Bermudian,” he explains. “In recent years young Bermudians have been given the opportunity to work in the United States and Europe to gain experience in those markets and then to return to work on the Island.

“It has resulted in a number of highly skilled young people entering the market but Bermuda has always been willing to attract talented staff if the need arises from other markets.”