Bermuda’s enduring strength as a captive insurance powerhouse

In an exclusive online panel, industry leaders from Aon and Marsh explain why Bermuda continues to dominate the captive insurance sector through regulatory agility, deep expertise and an evolving risk ecosystem.

For more than six decades, Captive Review and the wider insurance industry have looked to Bermuda as one of the world’s premier captive insurance domiciles. During a recent online panel hosted by Captive Review for its Bermuda Focus edition, industry leaders Seadna Kirwan, managing director at Aon, and Tanja Korff, managing director and Bermuda client services leader at Marsh, explored why the island continues to occupy such a dominant position in the captive insurance market, despite growing competition from other jurisdictions.

One of the clearest themes emerging from the discussion was the importance of Bermuda’s history in shaping its present-day success. Kirwan pointed to the island’s more than 60 years of experience in captive insurance as a critical differentiator.

According to Kirwan, Bermuda’s longevity has allowed it to develop a highly specialised infrastructure designed specifically around captives. Over decades, the island has built a concentration of expertise that spans regulators, government bodies, insurers, managers, legal advisers and other service providers. This network creates what she described as a “self-fulfilling” ecosystem, where the depth of knowledge available continues to attract increasingly sophisticated captive structures.

Watch the full panel discussion below.

That institutional experience is particularly valuable for large multinational organisations seeking customised risk financing solutions. Captives today are significantly more complex than many of the early structures established during the rapid expansion periods of the 1980s, 1990s and early 2000s. Bermuda’s market has adapted accordingly, developing the capacity to support sophisticated programmes involving multiple lines of business, advanced reinsurance arrangements and strategic risk financing initiatives.

Korff reinforced this point, emphasising that Bermuda’s accumulated experience has also made it highly nimble. As corporations face emerging and increasingly complex risks, captive owners often require innovative and bespoke insurance solutions. Bermuda’s ecosystem, she argued, is particularly well suited to addressing those needs because of its scale, flexibility and specialist expertise.

This ability to adapt quickly has become one of Bermuda’s defining characteristics. Rather than rely solely on its reputation or history, the domicile has consistently evolved in response to changing market conditions and new forms of risk.

“In a global environment where regulatory scrutiny and transparency expectations continue to increase, Bermuda’s willingness to align with recognised international standards helps reinforce confidence.”

The importance of regulation

The discussion also underscored the central role regulation plays in maintaining Bermuda’s global standing. Both panellists stressed that strong, but proportionate, regulation is fundamental to the credibility and effectiveness of any captive domicile.

Korff described regulation as a cornerstone of the captive insurance framework. Captive owners require certainty regarding operational continuity, governance standards and policyholder protection. Bermuda’s regulators, she noted, have built a strong reputation internationally by prioritising quality oversight while maintaining sensible and practical rules.

That balance is essential. Overly burdensome regulation can deter business, while insufficient oversight risks damaging a domicile’s credibility. Bermuda’s success, according to both speakers, lies in its ability to strike an effective middle ground.

Kirwan expanded on this idea by describing the close relationship between industry participants, government and the regulator as Bermuda’s “secret sauce”. While acknowledging that no system is entirely seamless, she argued that Bermuda’s collaborative approach allows the jurisdiction to respond effectively to industry developments.

She highlighted Bermuda’s pursuit of Solvency II equivalency in 2016 as a particularly important example. Bermuda sought equivalency with European regulatory standards while simultaneously ensuring that captive insurers were not subjected to disproportionate requirements designed primarily for commercial insurers.

The result was a bifurcated framework in which commercial insurers could meet the standards necessary for equivalency, while limited-purpose captive insurers benefited from a more proportionate regime tailored to their unique business models. Kirwan suggested this demonstrated Bermuda’s ability to engage constructively with international regulatory developments without undermining its attractiveness as a captive domicile.

This balance between international credibility and practical flexibility remains a key strength. In a global environment where regulatory scrutiny and transparency expectations continue to increase, Bermuda’s willingness to align with recognised international standards helps reinforce confidence among multinational organisations and stakeholders.

Competition from other domiciles

Despite Bermuda’s established position, the captive insurance market has become increasingly competitive. Numerous jurisdictions have expanded their offerings in recent years, creating a more crowded global marketplace.

However, neither panellist viewed competition as a threat. Instead, both described it as healthy and beneficial.

Kirwan argued that competition forces domiciles to remain focused, innovative and responsive to client needs. She emphasised that Bermuda does not position itself as the universal answer for every captive owner. Different organisations have different strategic objectives, risk profiles and operational requirements, meaning different domiciles may suit different circumstances.

Nevertheless, she maintained that Bermuda’s infrastructure and expertise allow it to provide robust solutions for organisations seeking sophisticated risk financing capabilities.

Transparency and international tax developments were also identified as important areas of focus. As global tax rules continue to evolve, jurisdictions such as Bermuda face increasing pressure to demonstrate compliance with international standards. Kirwan stressed that Bermuda has worked hard to position itself within a globally recognised and transparent tax environment, though communicating and implementing those changes effectively remains important.

Korff echoed the view that competition sharpens, rather than diminishes Bermuda’s value proposition. She revealed that Marsh-managed captive premiums are now evenly split between onshore and offshore domiciles in 2025, illustrating how organisations are actively evaluating a wider range of options.

This trend means Bermuda cannot afford complacency. Instead, Korff argued, the island must continue concentrating on areas where it offers genuine competitive advantages.

One such advantage is the ability to support increasingly strategic captive programmes. Rather than function solely as basic insurance vehicles, captives are now often used as broader risk financing platforms. Bermuda’s mature market allows captive owners to expand into additional insurance lines, utilise reinsurance more strategically and even incorporate third-party business into their structures.

The presence of Bermuda’s extensive commercial insurance and reinsurance market provides an additional advantage in this regard. Captive owners can access sophisticated risk transfer solutions and deep pools of expertise without leaving the jurisdiction. This integrated environment strengthens Bermuda’s appeal for organisations seeking long-term and scalable captive strategies.

Looking ahead

The panel discussion ultimately painted a picture of a domicile that remains highly relevant in a rapidly changing global insurance landscape. Bermuda’s history undoubtedly provides a strong foundation, but its continued success appears to stem less from tradition alone and more from its capacity for evolution.

The island’s collaborative regulatory environment, concentration of expertise and willingness to adapt to changing risks and international standards continue to distinguish it from many competitors. At the same time, industry leaders recognise that maintaining this position requires constant attention, innovation and responsiveness.

As captive insurance continues to evolve into a more strategic and sophisticated component of corporate risk management, Bermuda appears determined to retain its leadership role. The message from both Kirwan and Korff was clear: Bermuda’s greatest strength might not simply be that it pioneered the captive industry, but that it continues to reinvent itself for the future.

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