BF&M: ‘We Continue To Do Well’
Bermuda’s BF&M Insurance Group has emerged from a difficult year, with the cost of its reinsurance coverage going up even while the firm’s clients are opting for cheaper policies given the current economic downturn .
But BF&M, which operates primarily in Bermuda but also in Barbados, the Bahamas and the Cayman Islands, believes it has weathered the worst of the recession and the firm may even expand its information technology office in Bedford, Nova Scotia according to a Halifax newspaper.
“We try to protect ourselves, so we buy reinsurance from other companies,” said John Wight, president and chief executive officer of BF&M, told Halifax’s “Chronicle Herald” on Friday [Jan.13]. “But those large companies have been impacted by global events, so they are looking to charge us more for providing the reinsurance coverage.”
BF&M has also felt the effects of a sputtering economy as customers look to cut costs.
“The recession has affected our customers in a way that has challenged our insurance company,” Mr. Wight said. “We continue to do very well financially, albeit in a challenged environment because of what our policyholders are going through.”
Recessionary pressures have prompted policyholders to drop comprehensive coverage in favour of less costly insurance, he said.
“People look for the best value that they can during a downturn and are opting to reduce their insurance spend,” Mr. Wight noted.
Still, despite the challenging economic environment in Bermuda and the Caribbean, he said BF&M’s Nova Scotian branch will remain a key part of the insurance firm’s operations.
“If anything, our plan is to actually increase the number of people over time in our Bedford office because we can find really well-qualified, educated and proactive people there,” Mr. Wight said.
