Bermuda is home to many of the world’s top insurers and reinsurers due to its proximity to the United States , it being a British dependent territory, and the strong regulatory framework based on English common law. Having no corporate income tax is also a large benefit that draws many companies to the island. There are over 1,200 international insurers and reinsurers in Bermuda with combined assets of over $450 billion. The industry began with captives forming in the 1970’s, continuing into the 1980’s with companies writing excess liability and then into the 1990’s with natural catastrophe reinsurance companies forming. Capital came flooding into Bermuda after September 11 catastrophe, and the hurricanes in 2005, namely Hurricane Katrina. Bermuda is a popular place for incorporation due to the minimal red tape where in the US or UK it would take a year to start writing business, Bermuda companies can do so in a matter of months. The Bermuda Monetary Authority regulates the industry and is the equivalent to the SEC in the US and FCA in the UK.
The largest international Reinsurance companies on the island are ACE, Allied World, Amlin, Arch, AXIS, Catlin, Endurance, HannoverRe, Hiscox, Ironshore, Lancashire, Montpelier, PartnerRe, Platinum, RenaissanceRe, Tokio Millenium, Validus, XL and Zurich. The list is extensive and there are many more smaller companies competing for this lucrative business. The main Insurance / Reinsurance brokers also have a strong presence on the island, most notably, AON, Guy Carpenter, Marsh, and Willis.