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





Twitter LinkedIn Email Save as PDF
More Publications
29 Jun 2022

Bermuda’s legal system

Through an elected Bar Council, the Bar Association — in conjunction with the Supreme Court Judici...

29 Jun 2022

Avoid These 3 Common NDA Drafting Mistakes

It is difficult to think of a transaction that doesn’t begin with a confidentiality or non-disclos...

28 Jun 2022

Bermuda: a restructuring destination

Bermuda has an outsized, first-class insurance and financial sector, attracting complex, multination...

Contributors: James Batten
27 Jun 2022

Insurtech ILS and the New Normal

As Bermuda and the global markets with which the Island transacts move towards the so-called  ‘ne...

Contributors: Josephine Noddings
23 Jun 2022

Digital Assets in a Crypto Winter

In 2013, IT engineer James Howells was cleaning out his house. He had two identical hard drives: one...

Contributors: James Batten
22 Jun 2022

Bloomberg Tax Country Guide: Bermuda

Bloomberg Tax Country Guides provide overviews of the tax regimes of more than 200 jurisdictions. Th...

Contributors: Ashley Bento
9 Jun 2022

Bermuda’s long-term re/insurance landscape

Bermuda’s long-term re/insurance market has grown considerably in recent years. The island now has...

2 Jun 2022

Provisional Liquidation In Bermuda

Provisional liquidation in Bermuda is a distinctive, flexible regime that operates to support compan...

Contributors: James Batten
23 May 2022

The good life: Bermuda’s new economic pillar

The life sector has moved swiftly from being a new ‘nice-to-have’ in the Bermuda marketplace, to...

5 May 2022

Restructuring of (Re) Insurers during Covid-19

Restructuring involves changing the financial, operational, legal or other structures of a business ...