In August, the Bermuda Monetary Authority, in conjunction with the Bermuda Insurance Managers Association, published its third annual report on the Bermuda captive insurance market. The report, captioned “Bermuda Captives at the Close of the Decade: A Global Reflection,” builds on two previous reports: “A profile of the Bermuda Captive Insurance Market” dated February 2009 and “The Bermuda Captive Insurance Market – 2008 Update.”
The latest report provides a summary of the findings from the Annual Market Survey on Captives, taken each year from 2003 to 2009. The data gathered in the Annual Market Surveys includes the geography of risk assumption, industry utilisation of Bermuda captives, balance sheet positions by asset and liabilities composition and invested asset allocation and profitability indicators.
The report notes that the behavior recorded by Bermuda captives within these categories is characteristic of the behavior in the more general, global insurance market. This is particularly true with regard to certain trends identified in the report such as the widespread industry usage of captive insurance with no identifiable market leader and growth in business from non-traditional locations.