Bermuda must find a path between encouraging innovation and a providing a strong regulatory base if it is to attract inflows of new capital, says KPMG Bermuda.
Recognising that historically Bermuda has been at the forefront of product innovation, the global outsourcer also notes that this has often been driven organically.
Today’s more fluid market place means global capital providers have the ability to select the domicile that best serves their interest.
While Bermuda continues to be the domicile of choice for new capital, much of it is coming from jurisdictions unfamiliar with the Island and with little loyalty to it, says KPMG.
“The new breed of capital providers has choices of domicile and needs,” says David Thompson, risk consultant and KPMG, Bermuda.
“For Bermuda, therefore, remaining competitive in today’s marketplace clearly means being a jurisdiction where innovation can thrive… there is also no doubt that this needs to be accomplished while being in step with global regulation.”
It’s for this reason he welcomes the continuing move towards good governance with Bermuda’s move to equivalence with the EU’s Solvency II requirements.
Thompson adds: “KPMG believes that the equivalency status is a necessary and ever more valuable step towards driving the engines of good governance ion a market still thriving with innovation.”
Read the full Bermuda:Re+ILS interview with David Thompson and Agam Jain from KPMG here.
KPMG, David Thompson, Bermuda, Europe