Expertise is Bermuda’s captive edge
Bermuda’s captive insurance knowhow gives it an edge in an industry that has become increasingly competitive.
That is the view of Brady Young, chief executive officer of Strategic Risk Solutions, who added that changes in US tax rules had helped to make onshore US captive domiciles more attractive.
“Bermuda’s sustainable competitive advantage is the expertise among it’s service provider and regulatory community,” said Mr Young, who was speaking to Captive International ahead of the three-day Bermuda Captive Conference, which started at the Fairmont Southampton yesterday.
“Few if any domiciles have the breadth and depth of knowledge and experience that can be found in Bermuda. Also the accessibility and convenience of Bermuda continues to be attractive to captive owners, especially on the East Coast of the United States.”
Mr Young added: “The above bodes well for the more demanding and sophisticated clients who need what Bermuda can provide.
“The challenge for Bermuda is remaining competitive for those less complex clients who have the option to implement their captive programme in various onshore domiciles.”
US domiciles such as Vermont, Utah, Delaware, North Carolina and Tennessee have seen significant growth over the years. A number of states have also been modernising and updating their captive laws to facilitate new business.
Mr Young’s company has offices in Bermuda, the Cayman Islands and Vermont, as well as many other captive domiciles.
US tax reform that took effect the start of last year increased the compliance burden for offshore captives, which has become an additional consideration in forming a captive and may drive captives to redomicile onshore, Mr Young added.
He added that Bermudian captives have more flexibility than those onshore to do third-party business, an area in which he is seeing more growth.
“Many clients continue to like the ability to meet and access reinsurers and excess insurers in the same market at the same time they are doing captive business,” Mr Young said.
He added that the Bermuda captive market is seeing some “exciting developments” and is well placed to benefit from the changing landscape of players in the insurance supply chain.
“Mature captives are being used to solve new problems such as gaps in cyber-risk programmes and in response to the hardening market to access alternative sources and forms of reinsurance and capital,” Mr Young added.
Case against Tokunbo dismissed
New walk-in clinic delayed
Second councillor quits in St George
Caines petitions UK over Bermuda passports
Somerset steps up for Troy
Drink-driver injured motorcyclist in crash
Awards for five artists
Take Our Poll
- "Which of these is the worst political gaffe of modern times"
- Craig Cannonier getting on that plane
- Michael Fahy pressing on with Pathways to Status
- Bob Richards's 'Money doesn't grow on trees' speech
- Lt-Col David Burch and ATVs
- Wayne Caines and the London cereal cafe
- Zane DeSilva's mystery shopper cruise
- Total Votes: 5373
- Poll Archive