Bermuda captive

2010 issue

EDITORIAL- Bermuda Captive 2010

It seems that the effects of the soft market continue to linger. Despite fitful signs of a global upturn, it is still proving difficult for reinsurers to enjoy a clear upward run. More than most institutions, however, captives seem to be in the thick of it, facing opposition—and competition—from several sides. It takes a wise manager to see a way through.

In this, our annual review of the Bermudian captive industry, we feature plenty of comprehensive advice on how to manage, develop and grow captives to help them reclaim top spot as viable alternative risk transfer vehicles.

The Bermuda Insurance Managers Association, for instance, highlights the Island’s heritage as a leading captive market (page 8), while the Bermuda Monetary Authority reminds us of the efforts it is making, through the passing of benevolent regulation, to maintain a favourable business environment (page 14).

Elsewhere, you can read about how the inherent flexibility of captives makes them suitable for use within the growth industries of healthcare programmes (48) and employee benefits (44).

HSBC offers advice on choosing accounting methodologies, which are currently subject to intense regulatory scrutiny. We even offer a survival guide from TeleBermuda on what do in the face of total economic meltdown (page 40).

But, of course, we don’t envisage such a worst-case scenario, and this issue is proof once more of Bermuda’s ability to keep calm and carry on while all around are seemingly struggling. It is no accident that the Island enjoys such a high global profile

View the 2010 Issue Here