The recent boom in new captives could lead to lasting partnerships with fronting companies that fill a very real and specific need on Bermuda.
According to Jonathan Reiss, chief executive of Concert, Bermuda-based companies need fronting because, whether they’re commercial insurance or reinsurance or captives, a significant reason they’re here is because Bermuda has a very effective regulatory environment.
“We have appropriate regulations for high-profile reinsurance companies and those regulations are aligned with Solvency II,” Reiss told Captive International. “But at the same time, we’ve been able to preserve the efficiency of our captive sector. Captives do not need to be regulated, or should not be regulated, to the same level as commercial insurance or reinsurance.”
Read more: click on this link: Fronting partnerships with captives: Bermuda Captive Conference (captiveinternational.com)