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.
Bermuda is home to one of the largest international insurance and reinsurance markets in the world. This article outlines the current regulatory framework for the conduct of insurance and reinsurance business in Bermuda.
One of the fundamental objectives of litigation with an international flavour is to obtain a favourable judgment that is not only valid and enforceable in the country in which it is given but also other countries.
Bermuda is the first offshore jurisdiction to be granted ‘conditional qualified jurisdiction’ status by the National Association of Insurance Commissioners (NAIC), the US standard-setting and regulatory support organisation created and governed by the chief insurance regulators from each US State, the District of Columbia and five US territories.
Last week a consultation paper for a potentially game-changing regulation for the UAE's life insurance industry, Circular No. (33) of 2016 (Life Regulations)...
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