While few would dare slight Bermuda’s beautiful beaches or
personable populace, some competing jurisdictions have called into
question whether Bermuda’s world-leading position as captive
domicile of choice will continue. The answer, of course, is an
Bermuda-based expertise, recent regulatory changes and Bermuda
(re)insurance market developments among other factors, all suggest
that Bermuda’s dominance as a captive domicile of choice will
continue into the foreseeable future.
Captives, for those who may not know, are insurance companies
established to cover the risks of a related company or companies.
For example, this newspaper’s owner, The Bermuda Press
(Holdings) Ltd may seek to cover risks relating to defamation, for
example, through its own insurance company rather than using
another local or overseas insurance company. It may choose to do so
if the costs of set up, regulatory environment and running costs
are favourable relative to the cost of insuring through existing
carriers – or it may do so for a variety of other reasons. In
reality, captive structures range in complexity from as simple as
the above example to those that are far more complicated.
This summer’s Bermuda Captive Conference was testament to
Bermuda’s leading position within the global captive market.
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 more than $48bn
in annual gross written premiums.
Bermuda is also diverse in that it plays host to a growing
number of captives from Latin America and Asia and other regions
around the globe.
Since the PRIIPs Regulation was published on 9 December 2014, the concept of a multi-option product has been one of the most discussed topics among the manufacturers of insurance-based investment products.
Directors & Officers Insurance (D&O) is a relatively new
branch of insurance in the United Arab Emirates (UAE) market.
Accordingly, issues such as allocation of costs have not yet been
considered by UAE or Dubai International Financial Centre (DIFC)
From August 12 2016 when the UK's Insurance Act 2015 takes effect there will be differences affecting business (ie non-consumer) policies issued in Isle of Man and those issued in UK, including renewals.
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