Captive review Bermuda 2015 – report standing out from the crowd
Published: 1 Jun 2015
Article first published by Appleby, in June 2015
Tim Faries, partner, Bermuda corporate group head and sector leader for insurance at Appleby, speaks to Captive Review about Bermuda’s evolving captive market and Appleby’s involvement in a recent alternative risk transfer structure addressing African Union member states’ response to extreme weather events.
Captive Review (CR): Of the captive structures available in Bermuda, which is showing the most growth and why?
Tim Faries (TF): Bermuda captives can be divided into three categories: Class 1 are pure captives, with 100% of the risks underwritten by the captive for the owners of the insurance company and affiliates of the owners; Class 2 allows up to 20% of unrelated business risk to be written; and Class 3 allows as much as 50% of third-party business risk to be taken on.