The Increasing significance of Bermuda

With increased regulation and a global emphasis on transparency, some have questioned the future of offshore financial centres, Bermuda however, seems to be defying this movement and has very firmly positioned itself as one of the world’s leading financial jurisdictions.

Blessed with sustained activity in the tourism and insurance industries, Bermuda has enjoyed periods of successive economic expansion. Tourism is on the re-bound and insurance and reinsurance industries are experiencing strong trading with new customers in emerging markets, whose economies continue to develop despite the slowdown in Western markets. Bermuda offers many opportunities to entrepreneurs and business owners with its wealth of ‘pull factors’ attracting people to do business.

The region continues to update and improve its regulatory framework to withstand critical inspection and also endures to strengthen relationships with international financial centres in order to create an attractive business environment. Acquisition International speaks to David Ezekiel , Chairman and MD of Marsh IAS Management Services Bermuda Ltd. Marsh IAS Management Services Bermuda Ltd. has managed captives in Bermuda, a British Overseas Territory, since 1968 and has extensive expertise in defining, designing, and delivering tailored captive management services to a wide range of clients.

With 120 specialists based on the island and 420 insurance companies under management, Marsh is the largest captive manager in Bermuda. Against a backdrop of ever increasing competition from other domiciles, an insurance market that still shows signs of overcapacity, and a worldwide regulatory regime that gets more challenging every day, Bermuda has worked hard to maintain its status as the world’s largest captive domicile. Beyond captives, Bermuda has also established itself as one of the world’s largest insurance centers. The island now has more insurance companies with capital and surplus in excess of id="mce_marker" billion than any country in the world except the U.S. Bermuda has taken a number of steps to continue to protect its leadership position, including: • taking a leadership role in Solvency II 

equivalence; • focusing on the captive sector to ensure continued growth with international businesses; and • signing a number of Tax Information Exchange Agreements (TIEAs) with major trading partners. Bermuda’s business community has also engaged the government to ensure that Bermuda continues to be viewed as a domicile of choice for new insurance company formations, and that existing companies remain on the island. Changes in company law, relaxation of the Term Limits Policy, improved processing of work permits, and the introduction of the 10-year work permit have all been well received.

Bermuda has also recognised that putting these changes in place is only the first step—getting the message out to current and potential customers is also essential. Increased representation at major business gatherings and a concerted effort by Business Bermuda, a local trade group, are making an impact. Offshore financial centers have been under increasing pressure and scrutiny over the last five years. Bermuda is adapting to the changing environment and is well positioned to not only survive but thrive.

Company: Marsh IAS Management Services
Name: David Ezekiel
Email: david.ezekiel@marsh.com
Web: www.marshcaptivesolutions.com
Address: Victoria Hall, 11 Victoria Street, 5th Floor, Hamilton, HM 11 Bermuda

Telephone: 441-278-2000