Bermuda Takes Stock Of Captive Insurance Sector Contribution
by Mike Godfrey, Lowtax.net, Washington
14 September, 2017
Bermuda's captive insurance industry contributes an estimated USD174m every year to the island's economy, according to new research presented at the recent Bermuda Captive Conference.
The study, conducted by international accounting firm PwC for the Bermuda Insurance Management Association (BIMA), shows the captive insurance sector directly employs at least 557 people in Bermuda, and generates minimum fee income of some USD139m every year. An additional USD35m is contributed annually by captives to the Bermuda government, regulators, local suppliers, and commercial property owners, as well as hotels and other business hospitality vendors.
BIMA President Grainne Richmond commented: "We commissioned the survey because we felt it was important to understand our industry's economic impact on Bermuda as the island continues to maintain its position as the world's leading captive domicile."
The study confirms Bermuda is the world's largest and longest-established captive domicile, with a total of 776 active licensed captive insurers in 2016, generating USD55.3bn in annual gross written premiums. The study found that 2016 showed stability on 2015, with registration levels consistent with the overall captive market. New registrants came mainly from the traditional US market, but also included setups from Latin America, a key emerging market.
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