The Times Special Bermuda Report

As a major centre for insurance and reinsurance activities it has built up a large reserve of intellectual capital and acquired a reputation for innovation. Many observers point to the strength of the regulatory environment. 

In November 2015, Bermuda was awarded full equivalence under the EU's Solvency II directive, which gives its firms a "passport" to sell directly into Europe.

Since January 1 this year, the Bermuda Monetary Authority has implemented the Basel II regime for banking, which requires financial institutions to maintain enough cash reserves to cover risks incurred by operations.

According to Timothy Faries, Bermuda Managing Partner, the offshore law firm, the reputation of those sectors has created a "snowball effect". "Not only do you have the actual market here but also the capital, the decision makers who can do deals, as well as the support infrastructure," he says. "You have got lawyers, you have got regulations, and you have got the