Bermuda Captive Insurers

Driven by rising insurance premiums and diminishing property and casualty coverage, beginning in the late 1960s, Bermuda emerged as the domicile of choice for the majority of the world's insurance captives.

At the time, most captive owners (and their advisers) were attracted by Bermuda's perceived economic, social and political stability, its strong infrastructure, its close proximity to New York and a legal system that tended to follow the English common law and provided for an ultimate right of appeal to the Privy Council in the U.K. A series of favourable court rulings, the development of a respected system of financial regulation and the adaptability of the captive concept has contributed to the growth of captives in Bermuda.