Unpacking the Wealth in Bermuda

Summary

Bloomberg Businessweek Podcast Summary

Episode: "Unpacking the Wealth in Bermuda"

Date: March 27, 2026
Hosts: Carol Massar and Tim Stenovec
Guest: David Parker, Head of Business Development, Bermuda Business Development Agency

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Episode Overview

This episode explores the evolving economic landscape of Bermuda, focusing on its growth as a global finance and insurance hub, its diversification into technology and private wealth, and the unique challenges the island faces in balancing expansion with infrastructure. Guest David Parker offers insights into Bermuda's business strategy, its value proposition for global investors, and how it is positioning itself in an increasingly volatile geopolitical and regulatory world.

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Key Discussion Points & Insights

Bermuda’s Economic Evolution

• Traditional Strengths:

  • Bermuda is renowned for its role in global risk and insurance, maintaining its status as a major powerhouse in this space.

    "Bermuda has always punched well above its weight as a center for risk and insurance." — David Parker (02:24)

• Diversification Efforts:

  • Strategic expansion into technology, family offices, private wealth, and the “blue economy.”
  • Convergence of industries: insurance companies increasingly embrace digital assets and innovative technologies.

• Infrastructure Challenges:

  • Balancing economic growth and attracting international talent with the realities of limited, expensive island infrastructure.

    "It is a jigsaw...how do we attract talent but ensure that Bermuda is well placed to accommodate such talent as well?" — David Parker (03:49)

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Attracting and Supporting Global Wealth

• Approach to Global Competitiveness:

  • Rather than directly competing with other jurisdictions, Bermuda focuses on being the right strategic fit for select individuals and organizations.

    "In Bermuda, we try not to compete. We try to identify the individuals and organizations that...have a good fit with what Bermuda has to offer." — David Parker (05:16)

• What Wealth Seeks:

  • Certainty, safety, neutrality, especially amid global volatility.

    "At a time when you're seeing a lot of volatility in the world, we offer certainty, security, safety, neutrality." — David Parker (05:48)

• US Relationship and Global Turbulence:

  • Bermuda’s strong economic ties to the US, acting as a stabilizing partner amid geopolitical and climate uncertainty.
  • The reinsurance industry’s crucial role in supporting global recovery post-catastrophes.

    "Over $500 billion...in claims for catastrophes alone out of the US have gone through reinsurance industry in Bermuda." — David Parker (07:12)

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Tourism: More Than Just Beaches

• Investment Synergies:

  • Tourism and investment are interconnected, with visitors potentially becoming future investors.

    "Today's tourists might be tomorrow's investor, or today's investor might be tomorrow's tourist." — David Parker (07:55)

• Focus on Quality, Not Quantity:

  • Bermuda intentionally limits tourist volume to maintain exclusivity and quality.

• Infrastructure for Tourism and Business:

  • Investment in hotel development and accommodation to support both tourists and business travelers, including global events.

    "If we want to attract more global events to Bermuda, then we need to be able to accommodate people when they visit." — David Parker (08:55)

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Technology and the "Blue Economy"

• Insurtech & Digital Assets:

  • Active engagement with insurtech innovators and digital asset companies like Kraken, Coinbase, and Circle, following the launch of Bermuda's Digital Asset Business Act (DABA) in 2018.

    "There's been a big push since 2018...Kraken, Coinbase...Circle...have all now got a presence in Bermuda." — David Parker (09:42)

• Regulatory Sandbox:

  • Bermuda serves as a “sandbox” both in regulatory terms and as a manageable proving ground for new technologies.

    "Come to Bermuda. Small population, 65,000, innovation friendly, world class regulation, test something out before you go into the big economies." — David Parker (09:38–10:49)

• Ecosystem Collaboration:

  • Government, regulators, and private sector working in sync—referred to as "the Bermuda Triangle."

    "It's the regulator, the government and the private sector all working together to support innovation in Bermuda." — David Parker (11:21)

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Navigating the Global Regulatory Landscape

• Non-Confrontational Approach:
  • Bermuda aims for complementarity rather than competition with US businesses, providing a compliant, supportive base for international operations.

    "It's about Bermuda as part of their international growth...Bermuda is regulatory compliant with the US." — David Parker (12:14)

  • Many companies use Bermuda to expand into the US or global markets, leveraging Bermuda’s regulatory alignment.

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Notable Quotes & Memorable Moments

• On Attracting Wealth:

  "They don't like uncertainty. And I think at a time when you're seeing a lot of volatility in the world, we offer certainty, security, safety, neutrality." — David Parker (05:48)

• On the Human Side of Economic Strategies:

  "Today's tourists might be tomorrow's investor, or today's investor might be tomorrow's tourist." — David Parker (07:55)

• Behind-the-Scenes Invite:

  "I do know I'm officially inviting you to Bermuda." — David Parker (13:16)
  (Light-hearted moment, underscoring Bermuda’s hospitality and eagerness to showcase its offerings.)

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Timestamps for Key Segments

• 01:45 – Introduction to Bermuda’s economic landscape
• 02:24 – Traditional strengths and diversification discussed
• 03:27 – Infrastructure and talent challenges
• 05:16 – Competing for global wealth, focus on fit
• 06:30 – Bermuda’s response to global uncertainty; role of reinsurance
• 07:45 – Discussing tourism’s link to investment
• 08:55 – Expanding tourism infrastructure
• 09:38 – Technology sector, digital assets, regulatory sandbox
• 11:42 – Regulatory positioning vis-à-vis the US
• 13:14–13:19 – On-air invitation to the hosts to visit Bermuda

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Conclusion

In this episode, David Parker offers an insider’s look at how Bermuda leverages its established insurance industry, pursues strategic diversification (especially in technology and blue economy sectors), and juggles the practical realities of island infrastructure to remain an appealing, competitive and secure jurisdiction for global wealth and innovation. The episode provides valuable perspective for investors, entrepreneurs, and anyone interested in the interplay between geography, regulation, and economic opportunity.

Transcript

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You're listening to Bloomberg Business Week with Carol Massar and Tim Stanvac on Bloomberg Radio.

[Interviewer 1]

I'm just looking up right now weather in Bermuda. Ah, 65. Oh, that's kind of nice.

[Interviewer 2]

Yeah.

[Interviewer 1]

Kind of perfect.

[Interviewer 3]

Yeah, Right now, I would say it's perfect.

[Interviewer 1]

We're talking about Bermuda because we love checking in with leaders from all over the world to get an idea of what's happening on the ground, where they are. And one of those is David Parker. He's head of business development at the Bermuda Business Development Agency. He joins us here in the Bloomberg Interactive Brokers studio. When we think of Bermuda, at least from a business perspective, tourism now more secondary. But oftentimes we think of global finance, insurance, offshore business hub. Where's the biggest area of growth right now?

[David Parker]

It's a great question. As you will be aware, Bermuda has always punched well above its weight as a center for risk. And insurance. It really is a powerhouse in that particular space that continues to be very important to our economy. But there's also a focus on diversification. So what other industries globally do we think have a good fit with Bermuda? So we've been going big on technology, family offices, private wealth for Example, but also disability developing our infrastructure. Looking at things like the blue economy, we're a beautiful island in the North Atlantic. How can we leverage that from an economic perspective? Where it gets really interesting is the conversions between different industries. So technology. Bermuda has been focused very heavily on digital assets, for example, but as an insurance hub, we're now seeing a lot of insurance companies embracing that space. We've got businesses like Realm, for example, and meanwhile names, they provide insurance services, but it was using digital assets. So this conversions between some of the new economies that Bermuda has been focused on further strengthening its position, its traditional position as insurance hub, is there a

[Interviewer 1]

challenge or a tension with growing the economy and trying to attract new business, but also having the infrastructure there to support it? Islands are notoriously difficult to build on because you have to get those materials to the island, not to mention there expensive, which makes it a challenge to find employees because housing is expensive and those sorts of things. How do you balance those two things?

[David Parker]

I think the balance is, first of all, there's been a huge push at a government level in terms of developing homegrown talent. So you don't have to find international talent if you have local talent that can fill those job opportunities. But of course you do also have to look at international talent for speciality roles. And I think what Bermuda's been doing very well to attract international talent is putting in place initiatives and incentives to do so. So our eirc, for example, Economic Investment Residency Certificate comes with many benefits for individuals that are prepared to invest in Bermuda. That investment often goes into, you know, real estate development in terms of how we apply those funds, that helps with the ongoing infrastructure requirements to accommodate more international businesses coming in, more, more international talent coming into the jurisdiction. So it is a jigsaw. And part of our role at the Bermuda Business Development Agency is to put all those different pieces together. You know, how do we attract talent but ensure that Bermuda is well placed to accommodate such talent as well?

[Interviewer 3]

I am curious, you know, David, as we've seen wealth really take off, it feels like over the last decade, five to 10 years or so, and we talk a lot about dispersions between the haves and have nots. But I'm just curious as many. And the wealthy and the wealthy have gotten wealthier and looking for places to put their money. There's competition around the globe in terms of where they can go. So what do you guys have to do? Or do you find that it's a much more competitive space and how do you think about that?

[David Parker]

It's A great question. In Bermuda, we try not to compete. We try to identify the individuals and organizations that we think have a good fit. What Bermuda has to offer. You talk about wealthy individuals, for example. Many of them, in terms of managing risk, are looking at the portfolio across multiple jurisdictions. So the conversation that we're having might not mean moving assets and investment and their whole lives, lock, stock and barrel to Bermuda. It might be, what part of their portfolio would Bermuda be a good fit?

[Interviewer 3]

So diversification.

[David Parker]

Yeah, absolutely. And then what are they looking for more often than not, a degree of certainty. They don't like uncertainty. And I think at a time when you're seeing a lot of volatility in the world, we offer certainty, security, safety, neutrality. I think that's appealing to a lot of wealthy individuals.

[Interviewer 3]

Well, continue on that front because there

[Interviewer 2]

is a lot of uncertainty and there's

[Interviewer 3]

a lot of geopolitical uncertainty and, you know, people moving around, like in terms. So what have you seen as a

[Interviewer 2]

result of that, specifically?

[Interviewer 3]

And I'm curious about folks from the United States. I mean, there's uncertainty all around the world and I know you guys are global, but I'm just curious as the US has kind of gone through a little bit of an upheaval. Have you seen, I don't know, some kind of, you know, impact because of that?

[David Parker]

Well, Bermuda has longstanding or wars between

[Interviewer 3]

Ukraine, Russia, like I'm just. Even in the Middle east, what we're seeing right now.

[David Parker]

Well, first of all, Bermuda has a very long standing relationship with the United States. It's our biggest economic partner with just a few hundred miles off the coast of the Carolinas. It's a priority market from a BDA perspective. That's why we're in New York this week and visit the US Frequently on business. I think back to the conversation of volatility. What do you define as volatility? You talk about war, earthquakes, hurricanes, flooding, political wildfires, all these different things. But of course, because Bermuda is a hub for reinsurance. Yeah, A hub for risk. Very often when these different catastrophes are taking place around the world, it's where Bermuda and its industry actually steps up to support, I mean, over 500 billion, I think, in claims for catastrophes alone out of the US have gone through reinsurance industry in Bermuda. So I'm not going to suggest that catastrophes are an opportunity for Bermuda. Catastrophes are tragedy, wherever in the world they're taking place. But Bermuda does step up in such situations. And, you know, that's why I think the industry has really developed a reputation for itself over many decades. And some people describe Bermuda as the risk capital of the world for that very reason.

[Interviewer 1]

What about when it comes to tourism, something that we mentioned at the top, but, but, but certainly secondary to these other industries and the growth that you see, what are the opportunities for tourism?

[David Parker]

I think first of all, I always say that tourism and investment are very often linked. Today's tourists might be tomorrow's investor, or today's investor might be tomorrow's tourist. So we work very closely with the tourism authorities in Bermuda because we think there's some synergy to be gained there. Bermuda is an exclusive destination. It's not a high volume destination. We don't see people flying in, in the, in their thousands. But I think as a, as a beautiful island in the North Atlantic, close proximity to the us just six hours flight time from London for the right individual, it has something to offer. Beautiful pink beaches, turquoise sea, palm trees, some fantastic restaurants. I've lived in Bermuda personally for just over a year and I don't think there's been a day where I've not discovered something new. So for a small island, it also has a lot of depth, you know, and I think that's what people love about Bermuda, that I have to come to explore Bermuda.

[Interviewer 1]

But are there options for, for increasing investment in tourism there right now? Is that something that you guys are actively working on?

[David Parker]

Absolutely. So part of our role is infrastructure development. So how do we develop the hotels, for example, how do we increase accommodation capacity? Again, not just from a tourist perspective, but also a business perspective. If we want to attract more global events to Bermuda, then we need to be able to accommodate people when they visit. So our role is both to develop a portfolio of investable projects that includes hotels and tourism, but at the same time identify investors internationally that may see opportunity in Bermuda and match the two.

[Interviewer 3]

I am curious. You mentioned, you know, in terms of areas to grow and expand into. You mentioned the blue economy. You mentioned that technology was what technology specifically?

[David Parker]

Specifically, obviously is a major insurance hub.

[Interviewer 3]

Oh, okay.

[David Parker]

We are heavily engaged with insurtechs internationally that develop solutions for the industry that we think the industry in Bermuda could benefit from. There's been a big push since 2018 when we launched DABA, the digital assets Business act on companies coming in in that space. Kraken, Coinbase, to name a few. Circle, for example, have all now got a presence in Bermuda. But I often refer to Bermuda as a sandbox. Now it's a sandbox on two levels. First of all, our regulator, the Bermuda Monetary Authority, has a regulatory sandbox where clients can come to Bermuda with new ideas, new solutions and test them from a regulatory perspective. But also as a small island in the North Atlantic, as I mentioned, close to the U.S. it's a great place for entrepreneurs, founders, innovators to test something out before scaling into bigger markets. Now, people often say to me, well, Bermuda's too small. There's no market there. And I say that's missing the point. Come to bermuda. Small population, 65,000, innovation friendly, world class, regulation, test something out. Before you go into the big economies

[Interviewer 3]

international, I have to ask, just because of the work you've been doing on prediction markets, is that something folks are testing out pretty aggressively there or. No, not really.

[David Parker]

I wouldn't say so much from a prediction perspective, but certainly in the tech space, in the innovation space, we're seeing a lot of activity. We're seeing both major internationals coming to Bermuda to test new ideas, but scale ups as well. You know, smaller businesses that are less known internationally. In some cases, perhaps Bermuda would be their first port of call outside their home jurisdiction. They're looking to benefit, if you like, from the ecosystem in Bermuda, which has great depth and is very joined up from the regulatory environment. We call it the Bermuda Triangle. It's the regulator, the government and the private sector all working together to support innovation in Bermuda and help those companies to scale globally thereafter.

[Interviewer 1]

We think about the regulatory environment there and how it's a favorable regulatory environment to these industries. Over the last year in the US We've seen the regulatory regime change here and the whole idea is to make it so companies don't end up leaving the U.S. we've also seen, I think it's fair to say over the last year, economies and countries turn inward to a certain extent with trade policy and those sorts of things. How does that put your, your economy at risk if increasingly these countries are trying to do these things at home?

[David Parker]

I think for us it's not necessarily about speaking to businesses in America and say, hey, relocate your operations to Bermuda. It's about Bermuda as part of their international growth in the risk and insurance space. For example, Bermuda is regulatory compliant with the, with the US So we see some companies use Bermuda as a base from which to do business in America. Some companies in America use Bermuda as a base to do business internationally. So I think the US and Bermuda complement each other. We don't necessarily see the US as a source of businesses relocating. We see the US as a source of businesses they're looking to expand and leverage the benefits that Bermuda has to us offer and the same in the opposite direction. Many companies in the insurance and risk space will do something in Bermuda get regulated with one hour eye on doing business in the US and broader North American market.

[Interviewer 1]

We should do a show from Bermuda.

[Interviewer 3]

Yeah.

[David Parker]

We said we'd love to invite you down. Please.

[Interviewer 3]

We actually have. I think.

[Interviewer 2]

I think our folks have one time

[Interviewer 3]

years ago we'll have to revisit.

[Interviewer 1]

I have not done that.

[Interviewer 3]

No, you and I did not do

[David Parker]

But I do know I'm officially inviting you to to Bermuda.

[Interviewer 3]

Okay. Producers, are you listening? David, thank you so much. Safe travels.

[David Parker]

Pleasure. Thank you.

[Interviewer 3]

David Parker, head of Business development at the Bermuda Business Development Agency, joining us right here in our Bloomberg Interactive Broker studio.

[Interviewer 2]

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