The captive insurance industry in Bermuda is currently experiencing steady growth, having employed at least 557 people while generating about US$139 million in services fee annually.
As of December 2016, there were about 776 insurance captives in the country, according to a study conducted by PricewaterhouseCoopers (PwC) for the Bermuda Insurance Management Association (Bima).
Although Bermudians account for only 48% of the 557 people employed, the industry has helped prop up the island’s economy, paying millions of dollars into the public exchequer while spending extensively on commercial properties, hotels, and other hospitality services.
Overall, the report says, the insurance industry is contributing an estimated US$174 million to the country’s economy every year.
Most of the Bermudians employed by the industry are working as accountants, administrative and support staff, lawyers, or corporate secretaries.
“Bermuda is maintaining its position as the world’s leading captive domicile,” quoted the Royal Gazette, Bermuda’s local publication, citing Grainne Richmond, president of BIMA. “We commissioned the survey because we felt it was important to understand our industry’s economic impact on Bermuda.”
The new firms setting up captives in the country are mostly US corporations, with a few of them hailing from Latin America. Each new captive widens the business volume for local insurance management companies, banks, auditors, and law firms.
“The survey underscores the value of our captive market in terms of the number of jobs it creates, as well as the substantial financial contribution it makes to the local economy every year via fees and other spending,” Richmond added.