Barbados’ attractiveness as a global hub for captive insurance companies continues to grow, with almost $50 billion in assets under management up to September 2024, while another $123.8 billion in other classes of insurance are managed on the island.
This was revealed during the media launch of the fifth annual Barbados Risk & Insurance Management Conference (BRIM) 2025 hosted by BIBA, the Association for Global Business at the offices of Protexxa, Harbour Industrial Park, St Michael on Wednesday.
In a prelude to a much more extensive sectoral update that will be presented during BRIM on March 27 and 28 at the Wyndham Grand Hotel, Warrick Ward, chief executive officer of the Financial Services Commission (FSC), disclosed that Canada continues to be the main source market accounting for 51 per cent of captives, followed by the United States with 25 per cent.
Even as the island rates third in the Caribbean and seventh globally in captive rankings, the number of companies establishing in Barbados showed year-on-year growth. In 2024, there were 19 captive formations compared to 12 in 2023, the regulator outlined, as he heralded BRIM’s value to the insurance industry and its cross-linkages to sectors such as tourism.
Ward emphasised: “The BRIM conference allows us an opportunity to get away from creating new guidelines and legislation, to get outside and provide key updates and avail ourselves to the opportunity to listen, learn, and consider the views of not only our direct stakeholders, but also those who operate within the space.”
He noted further: “The insurance sector is the largest of our regulated sectors, but in terms of the international business, we are also revamping our framework for the securities sector because we see this as another plank that Barbados can further develop. We aim to do this without weakening the regulatory rigour, which we strive to uphold.
“Globally, the captive insurance sector continues to grow. As companies with increased use of business analytics, as well as their operations support, they have more insight with regards to decision making as they look to optimise the use of capital.”
He pointed to the agency’s push towards a risk-based regulatory framework as it has begun work on a “comprehensive and purpose-driven approach to our legislative amendments and our reform agenda” as the commission seeks “a modern and flexible framework”.
According to Ward: “The insurance sector continues to grow, and at the commission, we’re patently aware that we must evolve and be positioned to meet the needs and demands of our stakeholders. Therefore, in 2024, at the commission, we have been informed of the proposed amendments to the Insurance Act, which will facilitate the introduction of risk-based requirements for statutory funds, capital, and solvency.”
Also addressing the media launch was Joanna Austin, BIBA’s first vice-president, who highlighted that BRIM 2025 has already confirmed over 150 delegates, speakers and sponsors from ten countries and 88 companies.
While Barbados is a mature international insurance jurisdiction with several decades of experience in the arena, the BIBA vice-president observed the island had been “remiss” in putting on an in-country showcase of its expertise, regulatory environment and desirable quality of life, all in one package. However, the BRIM Conference fills a niche in the industry, providing a platform for professionals from various sectors, including property and casualty (P&C), reinsurance, risk management, banking, financial, and legal services, to come together and engage in cross-cutting discussions.
She added: “This year we will be having speakers who will be exploring the health and environmental impacts of PFAs (“Forever Chemicals”) and what insurance and captive managers can do to prepare for expected losses; why insurance linked securities are the single most important development in the insurance sector in the last two decades; the emerging risks being placed in captives and the associated analytical issues; and innovative solutions for mitigating the risks to cryptocurrencies from cyberthreats, among others,” Austin told the media.
Scott Stollmeyer of US Risk Group, who represented sponsors of BRIM 2025, praised BIBA’s outstanding efforts in producing the annual event.
(IMC1)
The post Barbados increases captive insurance market share appeared first on Barbados Today.
