The Bermuda captives market is open to innovative new areas of captive insurance, including potentially cannabis-related companies, a panel at a conference in London has heard.
The Bermuda Executive Forum in London, organised by the Bermuda Business Development Agency, saw a panel on Bermuda’s captive insurance solution, discussing Bermuda’s place in the global captives market.
The panel, which was moderated by Tom McMahon, president of Citadel Management Bermuda, and which included Chiara Nannini, director at Conyers Bermuda, Michael Parris, senior vice president and business development lead at Marsh Management Service Bermuda and Sebastian Ma’Ilei, tax partner at Deloitte London, looked at recent developments.
The panel stressed that Bermuda remains the gold standard for captives, especially in terms of the jurisdiction being well regulated and being the largest captive domicile.
However, it was also agreed that there were signs that the US market is now saturated, as most of those US companies that thought that they needed a captive insurance company now have created one, which has made it harder to generate captive business.
Cannabis-related insurance was one area mentioned by the panel as a possible new area of potential development, along with cryptocurrency insurance and that a jurisdiction as innovative as Bermuda might be able to help develop business in areas like these.
However, Parrish pointed out that this is a new and legally complex area. He also pointed out that whilst cannabis business might be illegal in the USA, it was a different in countries like Canada and that there was the opportunity for possible captive insurance business to result from that.
BDA, Panel, Captive insurance, Cannabis, Bermuda