EXCLUSIVE: Captive owners reminded that mandatory e-filing starts in Bermuda in 2017
Captive owners are being reminded that the e-filing of company returns will be compulsory in 2017 on Bermuda.
Jereme Ramsay, business development manager at the Bermuda Business Development Agency (BDA), said captive owners needed to be aware of the plans of the Bermuda Monetary Authority (BMA) in this regard.
The BMA has said it will implement mandatory electronic statutory financial returns (E-SFR) for captives and special purpose insurers (SPIs) from 2017.
“From December 31, 2016, it will become mandatory for Classes 1, 2, 3, A and B captives, and SPIs to adopt the system, so they can provide detailed filings electronically. The BMA expects the project to be in full swing by the second quarter of 2017,” Ramsay said.
Ramsay said that he is bullish about the future of captives on the island, citing the significant presence of commercial re/insurers as helping allow captive owners and operators to access levels of open-market underwriting capacity not found in other captive domiciles.
He admitted there has been a level of perceived uncertainty in both the regulatory and tax space since the UK decided to leave the European Union (EU) and the change of government in the US.
And said this may have distracted risk managers from focusing on their captives. But Ramsay believes the qualities of Bermuda can overcome such concerns.
“The focus on captive insurance by risk managers might be sidelined. But the strengths of what Bermuda offers, however, can settle these concerns,” Ramsay said.
“Bermuda continues to offer the same stable, attractive, effective and proven blue-chip international business domicile as it has for the past 70-plus years.”
Ramsay added that he sees Bermuda as on the rise with jobs being retained and an increase in potential business pipeline.
Some 800 companies generate nearly $50 billion in annual gross written premiums in Bermuda and 22 new captives were created in 2015 alone. “In 2014-2015, YoY figures show Bermuda’s already substantial captive market recorded increases in both the number of registrations and amounts of premium written,” he said.