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Bermuda Insurance Company Registrations Up

Monday, August 29, 2011

The pace of insurance company registration in Bermuda has picked up, bolstered in the main by a rise in special purpose insurers.

The latest figures released by the Bermuda Monetary Authority (BMA) show that 31 insurance companies have been registered in Bermuda so far this year. This represents a 30% increase for the seven-month period to July 31, 2011, and is an improvement on the 36 registered in the entirety of 2010.

While Jeremy Cox, CEO of the BMA, said the increased pace of registrations for this year was very encouraging, one specific area saw a marked upward trend in registrations. Cox explained that: “The area where we are seeing the largest single increase is in the Special Purpose Insurers (SPI) class. We have already seen 12 new SPIs registered this year. This compares to eight SPI registrations for the whole of 2010.”

The majority of the new SPIs - insurance entities that conduct special purpose business for a specific period of time - were formed in relation to the record-setting level of global catastrophes experienced during the first half of 2011, Shelby Weldon, the BMA’s Director of Insurance, Licensing and Authorisation, said.

According to Cox, altering the country's regulatory framework to accommodate SPIs in 2009 has resulted in the translation of market interest in these vehicles to a larger number of registrations being made. Cox added, that: "For example, it was exciting to see earlier this month the board of the California Earthquake Authority (CEA), that state’s quasi-governmental residential earthquake insurer, approve a USD150m catastrophe bond issue via a Bermuda SPI, Embarcadero Re. The choice of a Bermudian reinsurer for this latest CEA cat bond issue was a departure from previous normal practice for them, and a positive indication that markets seeking quality supervision remain confident in Bermuda."

Cox also noted the recent report by the European Insurance and Occupational Pensions Authority (EIOPA), which indicates that Bermuda’s regime for commercial insurers meets the criteria for Solvency II equivalence, although with some issues outstanding. Cox called this a "positive endorsement of the BMA's commitment to effective, quality risk-based supervision", stressing that Solvency II equivalence is "a great step in the right direction for Bermuda". He stressed that "our work continues on ensuring the framework enhancements we are putting in place build upon the effectiveness of Bermuda’s regulations and also remain consistent with international standards".

Weldon added that insurance registrations to date are also reflecting new business in both the captive and commercial insurance sectors of the Bermuda market. “Compared to 2010, Bermuda has also seen a rise in the level of Class 3 and Class 3A insurers being registered here. Five of each have already been registered up to July 2011. This compares to the four Class 3s and two Class 3As that were newly registered in total last year.”

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The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees




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