Bermuda Premier flags value of captives sector
The captives sector remains incredibly important to Bermuda, which is committed to innovating to ensure it stays strong – but, as the sector’s pioneer, it will also always take a long view, Bermuda Premier and Finance Minister E. David Burt, exclusively told Captive International in London, days after he represented Bermuda at the King’s Coronation on Saturday May 6.
Burt highlighted his belief that Bermuda remains the epicentre of innovation for the risk transfer industry globally, meaning he sees the domicile as well placed to adapt to and benefit from the rapid change the sector is seeing, as capacity is increasingly deployed in new ways and insurtech innovations accelerate change. This logic, he says, applies to the captives sector too.
“Across the past 30 years, every major innovation in insurance has happened in Bermuda. That is why I am so confident we can adapt,” he said. “It is difficult for me to speak about growth and innovation in the captive sector specifically, but I would say the captive sector is incredibly important to us.”
He acknowledged that the sector is increasingly competitive with many onshore and offshore domiciles competing for its business. But he said Bermuda remains a leader in the space – and he intends to ensure that remains the case.
“We have seen more competition, whether that’s from the US or other jurisdictions. Just as businesses compete, countries compete. But we're going to continue to ensure we innovate and continue to ensure we remain strong. Bermuda is the leader and intends to continue be the leader. We will do what is necessary to maintain that position.”
But he said the key to that was not to focus on what others are doing, and instead focus on doing what Bermuda has always done well. He said companies and investors value the reliability, consistency, reputation and longevity of Bermuda’s governance and regulatory regime.
“People involved in risk transfer understand the quality of our proposition. They know what they're getting. We've been doing this for a very long time. We pioneered the industry. We continue to innovate, and we continue to offer a regulator that is well respected around the world and a government that has political stability, that understands what's needed to grow an international business sector, whether it be in good times or difficult times.”