Characterizing Bermuda as “the hub for the American market,” andboasting about having 12 of the world's top-40 reinsurers,Bermuda's premier vowed to keep a “low regulatory burden” for newcompanies without sacrificing the island's successful focus onpreventing financial crime.

“Only the Germans and the Americans top Bermuda with premiumswritten among the top-40 reinsurers worldwide,” Premier Ewart F.Brown told an audience gathered here for the fourth annual BermudaCaptive Conference. “The insurance sector has helped sustain ourGDP growth, at 4 percent per annum since 2000–consistent, steady,sensible growth.”

He cited a study released in May–”The Bermuda Insurance Market:An Economic Analysis,” by J. David Cummins of The Wharton School atthe University of Pennsylvania and The Fox School at TempleUniversity–which cites Bermuda as one of the world's top-threejurisdictions in the global reinsurance market, along with theUnited States and Europe.

The report added that “Bermuda's importance in this regard hasaccelerated during the past few years.”

The study found that 12 Bermuda reinsurers appear in the list ofthe top-40 reinsurers worldwide–the largest number from anyjurisdiction. “Bermuda is the leading non-U.S. supplier ofreinsurance to U.S. insurers, providing a critically importantsource of risk capital for the U.S. market,” the report said.

According to the study, “new capital continues to flow intoBermuda on a regular basis, especially in response to large lossevents in the U.S.”

“Clearly our industry foothold is strong, and we are focused onre-cementing that position,” said Premier Brown. “Throughcontinued, prudent governance, I am personally committed–as is thefinance minister–to a low regulatory burden for new companies.”

Conventional wisdom, he added, “might suggest that such astrategy would have companies of inferior quality,” but he notedthat Bermuda's regulatory environment in fact attracts onlycompanies of “superior strength and stability.”

Premier Brown said this is a testament to Bermuda's policy of“full cooperation in legitimate financial crimeinvestigations.”

Last year, he said, U.S. Consul General Gregory Slayton and he“sat in a meeting with U.S. Treasury Deputy Secretary [Robert M.Kimmitt] and his staff. They voiced genuine appreciation forBermuda's documented cooperation in suspicious financial activityinvestigation.”

Premier Brown said that Mr. Kimmitt and his staff expressedgratitude for Bermuda's continuing effort to “disrupt internationalterrorism dealings,” adding that “people around the world knowabout Bermuda's commitment in this regard.”

Premier Brown said he will meet again with U.S. House Ways andMeans Committee Chair Charles Rangel, D-N.Y., “and these are thesorts of things we will talk about.”

He said he believes Bermuda's position is tremendously importantto American citizens, “especially the millions living alongAmerica's coastlines. As you know, Bermuda's place in the globalinsurance marketplace has consistently grown.”

Premier Brown added that with growth has come added competitionfrom other captive insurance domiciles–including Dublin, Dubai andVermont. “So many jurisdictions seem to be upping the ante,” hesaid, noting that “even with that being the case, we like ourposition.”

International insurers are using regional hubs to reach localmarkets, he noted, pointing out that Dublin is a hub for Europe,Dubai for the Middle East and Singapore for Asia. Meantime, hesaid, “Bermuda is the hub for the American market. We are uniquelypositioned geographically. Just like real estate, there is nosubstitute for location.”

Premier Brown also stressed the importance of Bermudians'involvement in shaping the industry's future, citing participationby the Association of Bermuda Insurers and Reinsurers, as well asthe Bermuda Insurance and Reinsurance Brokers Association.

He said his country is improving its education system whileworking with industry partners to mentor and prepare youngBermudians for “a bright career in the country of their birth.”

Mr. Brown stressed the importance for locals' involvement in theindustry, “because often the insurance industry is perceived in ourcommunity as an unreachable plateau for a select few, and everyoneelse is a spectator to that success.”

Unless Bermudians feel their country's “most lucrative businesscan provide them with fair opportunities, we are in a sociallydangerous space,” he concluded.