Ocorian has reported a significant increase in the number of captives it supports with its Bermuda offices delivering particularly strong growth.
There are now more than 70 captive domiciles worldwide, but Ocorian believes that given the strength of its proposition, Bermuda will continue to grow its market share. Currently Ocorian’s Bermuda insurance specialists support over 137 Bermuda-registered captive insurance companies, as well as 93 commercial and special purpose insurers.
Ocorian said that growth in the captives market in general is being fuelled by a hard insurance market and rising premiums with companies wanting to take greater control over their insurance requirements to make them more affordable and flexible. The number of captive formations nearly doubled in 2020, according to the most recent data from Marsh.
However, the Bermuda domicile is increasingly seen as a sophisticated, credible, and legislatively developed jurisdiction, particularly regarding insurance products, both traditional and exotic, said Ocorian. The Bermuda Insurance Act is bifurcated into rules that, acknowledging obvious differences, provide for a designated captive framework and one applicable to the larger, more complex commercial insurers.
Ocorian provides a full suite of legal, administration and fiduciary services to the ILS, commercial and captive insurance markets from its Bermuda, Cayman and BVI offices, ensuring that all structures remain compliant with applicable regulations in each jurisdiction.
Sherman Taylor, head of capital markets – Bermuda, Ocorian said: “A well-run captive can be an effective risk management tool, reducing group insurance costs for the captive owner.
“However, the commercial rationale for incorporating and establishing a captive extends beyond proﬁt considerations, and the current insurance hard market cycle has created new industry buzz about captives.
“The ability to inﬂuence pricing is a key beneﬁt of owning a captive. Large rate increases were evident in the latest round of insurance renewals, and it is unlikely that rates will come down in the near future as insurance and reinsurance companies are still dealing with the impact of major loss events spanning the past four years. It is highly anticipated that pandemic losses will exacerbate the situation and drive even more interest in captives.”
Ocorian, Bermuda, captive, insurance, market, support, uptick