14 BERMUDA www.captiveinternational.com
A vote of confidence from the top
Ahead of the Bermuda Captive Conference in June, one of the captives industry’s
best-attended events globally, Captive International sought the views of
Bermuda’s regulator and its premier to assess how they characterise the Island’s
enduring appeal for captives.
Providing solutions to all sectors
Craig Swan, managing director,
supervision (insurance) at the Bermuda
Monetary Authority (BMA), describes
how 2017 was a successful year for
captives, and why he is optimistic for
the Island’s future growth.
How successful was 2017 for Bermuda
and its captives market?
Bermuda had a total of 739 captives
on its register as at December 31,
2017, with gross written premium of
Seventeen new captives were registered
in 2017, compared to 13 in 2016. The
majority of new captives originated in
the US, with others coming from Europe,
Canada, Australia and Latin America.
Among the coverages written through
the new captives were general liability
and workers’ compensation for Canadian
conglomerates; nursing homes in the
US; and medical stop loss cover for
employees. Already in 2018, the BMA
has registered four US-based captives
writing a mixture of healthcare/workers’
compensation and property cover.
Were there any noticeable trends or
New 2017 captives covered a diverse
range of risks, particularly among the
class 1 captives, which experienced
significant growth year on year (12
new class 1s were registered in 2017
compared to four in 2016).
In terms of the types of business
being written, the new class 1s covered
a diverse range of risks, from Canadian
conglomerates writing general liability
and workers’ compensation; to US
healthcare captives insuring nursing
homes; and medical stop loss cover for
What trends are you seeing in
Bermuda’s captives market?
Trends reflected in the Bermuda captives
market include mergers, acquisitions
and consolidations, and turning multiple
captives into one, as part of cost-saving
measures. Usually the business is still
being written via an existing vehicle.
Bermuda continues to see heightened
interest in captives solutions from both
Latin America and Canada.
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