The recent Bermuda Captive Conference was testament to the growing interest in Bermuda as a world-leading captive jurisdiction. Surging numbers of attendees had access to a concentration of experts and top quality captive service providers based in Bermuda.

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 over $48bn in annual gross written premiums. Bermuda also hosts agrowing number of captives from Latin America and Asia and other regions, many of which with emerging economies around the globe.

The reasons for Bermuda’s global dominance as a captive domicile are manifold. Proximity to the US, a robust and top-tier reinsurance market, stability and depth of expert service providers are among the many attractive features for prospective and existing captive owners.

Bermuda’s regulatory landscape is another selling point. Importantly, the Bermuda Monetary Authority (BMA), the body regulating captives and commercial insurers, has acted with remarkable foresight and industry sensitivity as it gained equivalence under Solvency II such that Bermuda now has ‘bifurcated equivalence’. As such, only commercial insurers are required to adhere to the modified, and arguably more onerous, regulatory requirements under Solvency II, while captives (licensed as Class 1, 2, 3, A, and B Insurers under the Insurance Act 1978, as amended) are not.

This means that the costs associated with set up and ongoing compliance with Bermuda’s top-tier regulatory regime have not increased; nor have the regulatory burdens placed on Bermuda-based captives as a result of Bermuda’s equivalence under Solvency II. Therein lies the real triumph that is bifurcated insurance regulation in Bermuda.

Share
Twitter LinkedIn Email Save as PDF
More Publications
8 Oct 2021 |

Your will could expire after you marry again

Several events that occur during many of our lives should be considered reminders for us to review o...

30 Sep 2021 |

Labour disputes and certification/decertification process

There has been much discussion in the news recently about labour disputes between different unionise...

Contributors: Jordan Knight
30 Sep 2021 |

Changing attitudes

Bermuda:Re+ILS speaks to Brad Adderley, partner at Appleby, about how Bermuda will maintain its posi...

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...