Island Could Play Key Role in Islamic Insurance

January 5, 2011

Bermuda is well positioned to play a key role in the swiftly growing Islamic insurance, or takaful, industry, says local law firm Conyers, Dill & Pearman.

In a newly released background paper on Islamic insurance, CDP says despite the island’s small size and isolation a sophisticated legal system, a regulatory framework supervised by the Bermuda Monetary Authority (BMA) and a world-class pool of insurance and reinsurance talent has allowed the island to keep pace with global developments in the market — making it a prime jurisdiction for the development and expansion of the takaful industry.

“In widely reported comments made at the Bahrain/Bermuda Conference on Global Financial and Insurance Services in July 2010, now Premier Paula Cox said that Bermuda’s Government and private sector are actively involved in promoting the development of Islamic finance in Bermuda, and would welcome the development of takaful,” said the Hamilton law firm. ”By tapping into Bermuda’s resources, takaful and retakaful operators should be able to leverage access to capital as well as systems, products and expertise. This note considers how takaful and retakaful operations might be structured in Bermuda.”

During a marketing swing through the Middle East in November, Business Bermuda CEO Cheryl Packwood was interviewed by the BBC’s “Middle East Business Report” about the island’s potential as a viable and attractive alternative to financial hubs in the Middle East for Islamic investors.

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