Bahamian efforts to become a more attractive captive domicile are gaining momentum with Ryan Pinder, minister of financial services, again commenting on the island's plans.
Pinder reportedly said that the Bahamas needs to leverage its existing infrastructure and ultimately develop a niche market—following in the footsteps of fellow Caribbean domiciles Bermuda and the Cayman Islands—to attract more captives.
He also believes that the Bahamas’s proximity to the US east coast could appeal to a number of captives serving small and medium-sized businesses.
Speaking after the annual Captive Insurance Companies Association (CICA) conference, representatives from the Bahamas Financial Services Board (BFSB) and the Insurance Commission of the Bahamas (ICB) described why the domicile's recent progression in the industry makes it an attractive location for potential captive insurers.
Aliya Allen, CEO of the BFSB, attended the conference in Palm Springs with Carl Culmer and Jamell Bodie from ICB.
In a statement, Allen explained that a number of factors have contributed to the Bahamas progression. She said: “We have taken a number of important and positive legislative and administrative steps and we will continue to do so as a jurisdiction. But this internal groundwork must be balanced with ongoing external initiatives.”
“We need a presence at events like CICA to let the market know that we are very much interested in their business and have the capacity and wherewithal to handle it.”
Allen also said that the domicile's recent efforts to enhance its captive platform have not gone unnoticed. “There has been particular interest in the Bahamas as a domicile for small- and medium-size captives.”
She went on to explain that many individuals at CICA said that the accessibility of the Bahamas was a real and distinct advantage given that board meetings for a captive tend to be held in the domicile of choice.
Earlier this month, Pinder said that work is underway to rebrand the Bahamas as a competitive financial services centre, including identifying key sectors for industry growth and launching a new strategy for captive and international insurance.
The Bahamas was home to 11 captives at the end of 2011, according to the domicile's CICA listing.
