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
10 Dec 2019 |

The Insolvency Review – Seventh Edition

The seventh edition of The Insolvency Review  offers an in-depth review of market conditions and in...

5 Dec 2019 |

BMA forms view on cannabis related risk

The Bermuda Monetary Authority has confirmed that it will not object to BMA-supervised entities cond...

2 Dec 2019 |

Implications of the Privy Council’s decision in the ‘belonger’ case

Bermuda’s final appeals court has handed down its decision in a long-running case which had the po...

21 Nov 2019 |

BMA releases guidance on outsourcing

For many companies, outsourcing is essential in allowing them to cost effectively and efficiently pr...

15 Nov 2019 |

New Family leave rights on horizon

Working families will benefit from more generous leave entitlements in the New Year. When it comes i...

31 Oct 2019 |

What to expect from the new Wage Commission

A Wage Commission is to be established under recent legislation, in a step which may lead to a minim...

25 Oct 2019 |

Reinsurers optimistic about market outlook

Optimism is high in the reinsurance industry this year, according to Brad Adderley, partner at offsh...

24 Oct 2019 |

Bermuda responding to needs of fintech industry

Bermuda’s emergence as the offshore jurisdiction of choice for fintech companies seeking to operat...

11 Oct 2019 |

Purpose-built ISAC a boon for Bermuda

The long-awaited Incorporated Segregated Accounts Companies Act 2019 was tabled in the House of Asse...

3 Oct 2019 |

Maternity/Paternity Leave – Anticipated Amendments to the Employment Act

The Employment (Maternity Leave Extension and Paternity Leave) Amendment Act 2019 (Bill) (2019 Amend...