Legal Market Overview
In Bermuda, international business accounts for 85% of the island’s GDP. Insurance and other financial services are key pillars of the island’s economy: the jurisdiction continues to attract new reinsurer captives, insurance-linked funds and funds investing in insurtech products and blockchain technologies. Other important strands of legal work in the region include SPACs, asset-backed securitisation transactions, insurance securitisations through catastrophe bonds, and international debt listings.
It is hoped that an ever-evolving regulatory environment, and a greater focus on compliance, will act as an anchor to bring increased legal work and investment into Bermuda. In March 2021, the jurisdiction’s new Economic Investment Certificate and Residential Certificate Policy was rolled out, providing the right to live in Bermuda – along with a path to long-term residency – to non-Bermudian individuals who invest at least BM$2.5m in the island. Also expected to come into full force before the end of 2021 is Bermuda’s Personal Information Protection Act 2016 (PIPA), representing a change in informational privacy law in the region. Elsewhere, the Digital Asset Business Act 2018, which introduced the possibility of digital asset businesses setting up and being regulated in Bermuda, continues to develop opportunities in the fintech space.