Bermuda’s captive industry is experiencing increasing interest from the expanding markets of Latin America and Canada.
This is according to PwC Bermuda’s captive and tax specialists, speaking at the Bermuda Captive Conference, which took place in June.
The conference, of which PwC Bermuda is a sponsor, drew a significant number of attendees from Latin America and a number of sessions were presented in Spanish with translation.
PwC said that while the uses and users of captive insurance companies have changed in the last few years, the changing regulatory environment has highlighted the importance of captives as both a tool for risk management and efficient capital use.
David Gibbons, PwC Bermuda captive insurance leader, said: “The fact that this conference had such high numbers of actively engaged attendees and sponsors shows the focus that many companies are putting in the usefulness of a captive.
“We all saw extensive interest from new market participants from Latin America and Canada where concern over risk management and mitigation benefits offered by a Bermuda captive fits well into their global structure and philosophy.
“We also saw existing captives looking for new ways to utilise the capital and connections in the reinsurance market they had built over the years to write new lines of business, specifically employee benefits and cyber risk.”
He added that Latin America, as an expanding market, is increasingly driving more business to Bermuda.
“As Latin American countries experience significant economic growth, many companies are expanding beyond their home borders, creating what are known as ‘multi-Latinas’. These companies are exploring ways to manage their expanding exposure to risk. One of the most effective ways they are managing their risk is through the use of captive insurers,” said Gibbons.
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