The Bermuda Monetary Authority (BMA) registered 64 new insurers and reinsurers in 2015, only one fewer than in 2014, and its captive registrations defied soft market conditions to achieve growth.
Out of the 64 new insurers and reinsurers, 22 were limited purpose insurers or captives, an increase from the 16 registered in 2014.
Shelby Weldon, director of licensing and authorisations at the BMA, commented: “Registration of captives is on the increase because they not only reduce insurance costs but are important components of the parent companies’ burgeoning risk management programmes.”
He added: “Captives registered between July and December 2015 cover a diverse range of risks, from oil and natural gas drilling in Canada to drivers’ insurance in Peru.”
“It is encouraging to see continuing registrations from Canada and Latin America, as these regions have been targeted by Bermuda’s business development efforts. However, the US remained by far the greatest source of Bermuda’s captive formations during the H2 2015.”
Weldon noted that Bermuda’s captives remain out of scope of Solvency II supervisory requirements, which only apply to Bermuda’s commercial reinsurers, insurers and insurance groups.
The BMA revealed it registered 13 new Class 3A, 3B and 4 reinsurers/insurers in 2015, compared with the 11 registered in 2014. During Q3 and Q4 2015, the BMA also registered a new Class 4 insurer, Qatar Reinsurance Company.
The BMA also registered a total of 20 new special purpose insurers in 2015, compared with the 28 in 2014.
