In 2023, the Property & Casualty division set numerous ambitious goals, aiming to refine our property portfolio and lead the market in our jurisdictions. This vision propelled us to create a more streamlined, efficient, and consumer-friendly product range, laying the foundation for our continued success and resilience in the ever-evolving Property & Casualty landscape.
Objectives and achievements
BF&M’s ambitious goal has been to create a more consumer-friendly product range that facilitates quicker and more efficient claim settlements. During 2023, we advanced our product harmonisation project, focusing on enhancing our policy contract wordings and standardising our product offerings across all jurisdictions. This harmonisation not only streamlines our operations, but also positions us to seamlessly integrate upcoming technological advancements. Our efforts are almost complete.
In addition, the team deliberately scaled down the property portfolio through the implementation of new underwriting guidelines in 2023, which enhanced the quality of our Property & Casualty book. We strategically decreased our involvement in certain programmes where we identified an overexposure of risk for the group. This rigorous underwriting discipline, coupled with rate increases across all business lines and jurisdictions, was instrumental in aligning our pricing with the rates required for long-term profitability.
This important improvement not only helped to attract reinsurance to the portfolio, but also enabled us to continue providing AM Best A-rated insurance solutions to our customers. Despite the challenges these initiatives presented, we continued to successfully serve the residents of the islands where we operate, guided by our commitment to offer insurance solutions to personal and small business customers, who lack the same access to international markets as larger businesses. This approach led to a remarkable financial turnaround for our Property & Casualty business.
In 2023, the Property & Casualty claims team closed 88% of reported claims within 30 days, a testament to our commitment to provide exceptional service. This efficiency not only enhances customer satisfaction, but also mitigates inflationary pressures on claim settlements, benefiting all parties involved.
Evolving our offerings
In 2023, we deployed the index linking programme in the Bermuda homeowner market, automatically adjusting policy values to reflect annual CPI adjustments. This programme is designed to keep pace with inflation, representing our dedication to reducing the risk of underinsurance and adapting our offerings to meet the evolving needs of our customers while keeping up with market conditions.
As we look to the future, our plans to extend index linking on home policies to the Caribbean regions in late 2025 will position us as a market leader in addressing consumer needs related to inflation. Furthermore, our commitment to continuous improvement in underwriting, product innovation, and customer-focused claims service will help us maintain — or improve — our strong market position.
Looking ahead
Heading into 2024, our objectives in Property & Casualty are well-defined: to uphold and refine our underwriting guidelines, pursue product improvements, sustain competitive rates, and continue delivering unparalleled service.
Globally, the Property & Casualty sector experienced tight capacity in 2023, which significantly affected both our business operations and our customers. In response, maintaining precise underwriting strategies and appropriate rate levels will be our focus in 2024 to remain competitive in the marketplace while continuing to provide the highest quality of service to our customers.
These efforts are fundamental to our commitment to being a reliable partner to our customers in their moments of need, today and in the future.
Caroline Mills-White
EVP, Group Head of Property & Casualty