Bermuda-based expertise, recent regulatory changes and Bermuda (re)insurance market developments among other factors, all suggest that Bermuda’s dominance as a captive domicile of choice will continue into the foreseeable future.

Captives, for those who may not know, are insurance companies established to cover the risks of a related company or companies. For example, this newspaper’s owner, The Bermuda Press (Holdings) Ltd may seek to cover risks relating to defamation, for example, through its own insurance company rather than using another local or overseas insurance company. It may choose to do so if the costs of set up, regulatory environment and running costs are favourable relative to the cost of insuring through existing carriers – or it may do so for a variety of other reasons. In reality, captive structures range in complexity from as simple as the above example to those that are far more complicated.

This summer’s Bermuda Captive Conference was testament to Bermuda’s leading position within the global captive market. As noted in the recently published Bermuda Business Development Agency press release following the conference, Bermuda is home to nearly 800 captive insurance companies, supporting primarily Fortune 500 corporations in the US, and generating more than $48bn in annual gross written premiums.

Bermuda is also diverse in that it plays host to a growing number of captives from Latin America and Asia and other regions around the globe.

Read More

Share
Twitter LinkedIn Email Save as PDF
More Publications
8 Aug 2019 |

Summary of Economic Substance Requirements in Bermuda, the British Virgin Islands and the Cayman Islands

Economic Substance Requirements in Bermuda, the British Virgin Islands and the Cayman Islands

Contributors: Shana Simmonds
5 Aug 2019 |

Probationary Periods – Importance of Dates when Considering Extensions

New employment is not always a smooth process. The employer and employee both need to adjust to new ...

24 Jul 2019 |

Legal Frontiers in Bermuda

The Asia-Pacific region has seen a surge of fintech start-ups, service providers, suppliers, investo...

Contributors: Fiona Chan
19 Jul 2019 |

Landscape of Bermuda financial sanctions

In the ever-changing world of politics and their related global financial sanctions, it is imperativ...

18 Jul 2019 |

Bermuda ILS overhaul welcomed but will new vehicles take off?

The ILS market has broadly welcomed moves by the Bermuda Monetary Authority (BMA) to create a new co...

8 Jul 2019 |

Bermuda to introduce new classes of insurers

Bermuda’s commitment to providing innovative solutions in the ever-evolving insurance marketplace ...

3 Jul 2019 |

Directors Unexpected Payroll Tax Liability

Payroll tax is levied against every employer, employee, self-employed person and deemed employee. Wh...

1 Jul 2019 |

Latest Developments in Bermuda’s Economic Substance Regime

The Economic Substance Amendment Act 2019 (Amendment Act) became operative on 28 June 2019. Bermuda ...

Contributors: Sally Penrose
26 Jun 2019 |

Regulatory Headwinds

Faced with increased scrutiny from regulators on both global and jurisdictional levels, businesses m...

Contributors: David Dorgan
24 Jun 2019 |

Appleby’s Adderley: Bermuda Eases Path to Collateralised ReInsurance

Partner Brad Adderley speaks to A.M. Best at the recent Bermuda Captive Conference. Brad says “Ber...