A growing global powerhouse: Bermuda has evolved into a world center of insurance and reinsurance

Article Abstract:

Bermuda remains unchallenged as the world's captive insurance capital and a global center of insurance and reinsurance, a position it built in a relatively short period of time. The total asset base of insurers incorporated in Bermuda is estimated to surpass $95 billion. It accounts for more than 10% of world reinsurance premiums. Its expanding market is characterized by a wave of consolidation, an increasing number of captive insurers, subsidiaries in foreign markets and geographical market growth. The market is forecast to expand from 1,400 companies and a capital of $30 billion, to 1,500 firms and $40 billion of capital.

Insurance, Insurance Carriers and Related Activities, Captive Insurance Agents, Industry Overview, Bermuda, Captive insurance companies

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Lessons being learned

Article Abstract:

The relocation to Bermuda and subsequent liquidation there of Electric Mutual Liability Insurance Co. (Emlico) and its single corporate policyholder General Electric Co. (GE) have raised important issues regarding corporate dominion, self-dealing and especially fairness. GE was involved in Emlico's relocation from Massachusetts to Bermuda, where GE had substantial control over Emlico's liquidation and secured more favorable policy recoveries. The switch also adversely affected the payment obligations of Emlico's reinsurers.

Insurance Agents & Brokers, Management, General Electric Co., GE, Electric Mutual Liability Insurance Co.

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