Bermuda’s insurance and reinsurance sector is being urged to look beyond algorithms as companies expand their use of artificial intelligence. According to Bermuda Re, the real advantage of AI lies not in the technology itself, but in how organisations apply it through skilled people, reliable data and well-designed business processes.

The message is particularly relevant in Bermuda, where insurers, reinsurers and insurance-linked securities managers operate in a highly specialised global market. While AI can support underwriting, claims handling, risk analysis and operational efficiency, its value depends on employees understanding both the technology and the complex risks being assessed.

Bermuda Re’s position suggests that successful adoption requires more than purchasing new systems. Companies must ensure data is accurate and accessible, establish clear accountability for automated decisions and integrate AI into everyday workflows. Human judgement remains essential, especially when interpreting unusual risks, challenging model outputs or responding to rapidly changing market conditions.

For Bermuda’s financial services industry, the approach reinforces the island’s broader emphasis on expertise, regulation and innovation. AI may help firms work faster and identify patterns that would otherwise be missed, but competitive advantage is likely to come from combining those tools with experienced professionals and sound governance. As adoption grows across the market, the companies best positioned to benefit may be those that treat AI as support for decision-making rather than a substitute for it.