The regulatory burden and costs of operating either United States or Lloyd’s-based captives in the 1960s inspired Mr Reiss to seek an alternative jurisdiction to establish captives. Ultimately, the location, reputation and political stability of Bermuda proved appealing. Bermuda is now the world’s leading offshore captive domicile with approximately 900 captives together holding assets exceeding $85 billion.

Numerous Fortune 500 companies in industries spanning manufacturing, mining, healthcare and property have established Bermuda captives to insure workers’ compensation, general liability, errors and omissions and directors’ and officers’ liability insurance. Bermuda captives are increasingly insuring reputational, regulatory, credit, terrorism, mergers and acquisitions, environmental, satellite technology, political and cybersecurity risks and funding employee benefits.

Many profitable family-owned businesses and the family offices supporting them should consider the benefits of captives. Contractors, retailers, physicians and other healthcare providers, hotels, restaurants, transportation and car dealers are increasingly establishing small captives to cover risks including business interruption, reputational, regulatory risks and the risk of loss of a key supplier, customer or employee.

Family-owned and more widely-held businesses based in Latin America — particularly in Mexico, Columbia, Peru and Chile — have experience utilising Bermuda captives to insure against property and, increasingly, political risk. This has been facilitated by Bermuda’s network of tax information exchange agreements with those countries.

Read More

Type

Insight

Locations

Bermuda

Share
Twitter LinkedIn Email Save as PDF
More Publications
1 Sep 2021 |

Changes to rules on Permanent Residency Certificates

The Ministry of Labour has recently issued a policy paper, ‘Securing Permanency for Long-Term Resi...

26 Aug 2021 |

What to remember when an employee leaves

Just as when a new recruit is on-boarded, there are a variety of tasks an employer needs to deal wit...

23 Aug 2021 |

BMA seeks more seamless marketplace with ILS process enhancements

Recent changes made by the Bermuda Monetary Authority (BMA) to improve processes specific for catast...

17 Aug 2021 |

ILS Bermuda Executive Roundtable 2021

Despite the impacts of the Covid-19 pandemic and subsequent restrictions on travel and face-to-face ...

13 Aug 2021 |

A digital asset future: closer than we think

Most of us at some point in our lives have participated in a rewards programme either at our favouri...

26 Jul 2021 |

What not to forget when an employee leaves

There are many practical and ‘housekeeping’ matters that employers need to deal with when an emp...

Contributors: Jordan Knight
23 Jul 2021 |

Contributed surplus: it’s not capital!

Last week, in part one, we discussed the meaning of share premium, the various ways a company may us...

16 Jul 2021 |

Share premium: do you have it?

When the issuance of shares by a company is discussed, the first thought that comes to mind is the s...

2 Jul 2021 |

No question you’ll see more life reinsurers in Bermuda

While the emergence of property and casualty (P&C) startups in Bermuda is likely to be muted in ...

2 Jul 2021 |

Bermuda: An introduction to Dispute Resolution

This edition discusses Current Economic Conditions and Dispute Resolution Activity, Trends & Dev...

Contributors: Jordan Knight