An Introduction To Insurance

Bermuda is a sophisticated, innovative and well-regulated jurisdiction for insurance.

Beginning in the late 1960s and early 1970s and driven by rising insurance premiums and diminishing property and casualty coverage, Bermuda emerged as the domicile of choice for the majority of the world's captive industry. A captive insurance company (also known as limited-purpose insurer) is a self-insurance vehicle set up to insure the risks of its parent(s) and/or the affiliates of its parent(s).

At the time, captive owners (and their advisers) were attracted by Bermuda's economic, social and political stability, strong infrastructure, proximity to North America and a legal system that followed English common law, which provided for an ultimate right of appeal to the Privy Council in the United Kingdom.