At the heart of Bermuda’s appeal is the BMA’s proportionate and risk-based supervisory regime. By offering tailored oversight and engaging closely with captive insurers, the BMA fosters a deep understanding of each company’s operations, challenges, and goals. The framework is bifurcated between commercial and captive supervision, ensuring standards are robust yet appropriate for the level of risk involved.

Bermuda has demonstrated remarkable resilience and consistent growth in its captive sector. After registering 18 new captives in 2022, the market added 16 more in 2023 and 17 in 2024. Many of these new entities are looking to bridge coverage gaps and respond to evolving risks, particularly in areas like property insurance, where capacity constraints have driven innovation in risk retention strategies.

Technology continues to shape the future of Bermuda’s captive market. Advanced tools, ranging from AI-powered claims systems to digitised reporting platforms, are enhancing efficiencies and reducing fraud. The BMA stresses the importance of sound governance and education among boards to responsibly manage these powerful technologies.

The BMA is also refining its approach to Segregated Account Companies (SACs) sector. In 2024, it issued a Consultation Paper aimed at enhancing oversight and transparency in SAC insurer operations. Key updates include revised audit requirements and annual approval processes, with new guidance set to take effect from the 2025 year-end.

The report also offers valuable data-driven insights, highlighting trends such as:

• 65% of Bermuda’s captives operate as pure captives
• 70% of risk assumed comes from North America and Bermuda
• 15% of captives are in run-off, and another 15% use segregated accounts

Analysis of statutory returns revealed key patterns in profitability, investment strategies, and line-of-business activity, providing a comprehensive snapshot of the sector’s strength and diversity.

As global risks continue to evolve, Bermuda’s captives are staying ahead of the curve, leveraging innovation, data, and strategic foresight. The BMA remains committed to ensuring that Bermuda remains a leading jurisdiction for captive insurance, built on a foundation of transparency, collaboration, and regulatory excellence.

BMA’s Captive Report can be found here.