Ocorian, a provider of capital markets, and corporate and fiduciary services, has reported seeing a significant increase in the number of captives it supports, with its Bermuda offices showing particularly strong growth.
According to the announcement, Ocorian believes that given the strength of its proposition, Bermuda will continue to grow its market share. Currently Ocorian’s Bermuda insurance specialists support over 137 Bermuda-registered captive insurance companies, as well as 93 commercial and special purpose insurers.
A hard insurance market and rising premiums is fuelling the captives market growth, with companies wanting to take greater control over their insurance requirements to make them more affordable and flexible.
However, according to Ocorian, the Bermuda domicile is increasingly seen as a sophisticated, credible, and legislatively developed jurisdiction, particularly regarding insurance products, both traditional and exotic.
Sherman Taylor, Head of Capital Markets – Bermuda, Ocorian said: “A well-run captive can be an effective risk management tool, reducing group insurance costs for the captive owner.”
Ocorian provides a full suite of legal, administration and fiduciary services to the ILS, commercial and captive insurance markets from its Bermuda, Cayman and BVI offices, ensuring that all structures remain compliant with applicable regulations in each jurisdiction.
These regulations include The Bermuda Insurance Act, which is divided into rules that acknowledge obvious differences, provide for a designated captive framework and one applicable to the larger, more complex commercial insurers.
Taylor added: “The commercial rationale for incorporating and establishing a captive extends beyond profit considerations, and the current insurance hard market cycle has created new industry buzz about captives.
“The ability to influence pricing is a key benefit of owning a captive. Large rate increases were evident in the latest round of insurance renewals, and it is unlikely that rates will come down in the near future as insurance and reinsurance companies are still dealing with the impact of major loss events spanning the past four years. It is highly anticipated that pandemic losses will exacerbate the situation and drive even more interest in captives.”
