Bermuda

Question 1

exempted undertakings protection act

Answer 1

assures freedom from any bermuda tax on company profits or income until 2016

Question 2

Bermuda is a market for

Answer 2

reinsurance and captives

Question 3

Ace and Xl formed as a result of

Answer 3

US commercial liability crisis. was formed out of 34 companies investments pulled together by Marsh

Question 4

Mid ocean, lasalle re, and terra nova invest in lloyds making

Answer 4

bermuda insurers and reinsures lloyds largest capital providers

Question 5

comparative advantages of bermuda market

Answer 5

regulatory system
lower regulatory burden
highly educated and specialized workforce
concentration of insurers/reinsurers
location close to NY and london

Question 6

three classes of bermuda reinsurersl

Answer 6

class of 1992
class of 2001
class of 2005

Question 7

class of 1992 created/known for

Answer 7

created after hurricane andrew - provided capital to the reinsurance market for catastrophes

Question 8

class of 2001 created/known for

Answer 8

creater after 9/11 - provided more long-term capital to the reinsurance industry, they were at a benefit because they faced no loss burden as new insurers

Question 9

class of 2005 created/known for

Answer 9

KRW (katrina, rita, wilma) hurricanes - noted that reinsurance cannot just rely on long term capital as the solution

Question 10

Why are reinsurers less active on bermuda now

Answer 10

decreasing tax benefit