Cayman, Bermuda rivalry intensifies

Bermuda Premier Paula Cox has hit back at her Cayman Islands counterpart in a fresh war of words between the rival British Overseas Territories over their respective insurance markets.

Cayman Premier McKeeva Bush has boasted that his country will win insurance business from Bermuda and can do it "without the malice, without the inhibitions of race, without the inhibitions of transport".

Bush made the prediction to delegates attending the 11th annual Insurance-Linked Securities Summit in Grand Cayman last week.

"In the mid-Atlantic they say they 'may' reduce some fees; we have reduced fees. They are still talking about their immigration policy and make long statements, but I say this boldly: while Bermuda has been the champion, be assured that we can grow. We here can do it without the malice, without the inhibitions of race, without the inhibitions of transport," Bush said.

"My rating is still AA3 rating; what is theirs?"

Last year Standard & Poors downgraded Bermuda's sovereign credit rating to AA-.

Cox responded to his comments on Sunday, saying Bermuda is known as the risk capital of the world and is working to extend its lead while Cayman was trying to close the gap.

She added that Bermuda favoured collaboration with others, as part of the international community, rather than adopting an isolationist approach.

The island also took measures to include Bermudans in the economic success and to ensure international business felt welcome, Cox said.

Bush has thrown down the gauntlet to Bermuda before.

At last December's Cayman Captive Forum, Bush said his domicile had more favourable immigration laws and land ownership policies.

Cox responded, saying, "Bermuda is focused on extending its lead, while Cayman speaks about closing the gap.

"Our destination is far beyond our borders and we have the infrastructure and the talent to make it happen.

"It should be pointed out that Bermuda continues to introduce initiatives to ensure that we include Bermudans in the path for success of our jurisdiction.

"Yet, we do not take our reputation for granted, nor do we rely on past successes. So we work tirelessly and continuously.

"We focus on strategic alliances with our business partners. In this way, we enhance our enviable reputation by strengthening our relationships with the European Union, UK and US jurisdictions; strengthening our regulations to satisfy the global regulatory agencies; and enacting business-friendly legislation, then it is unlikely that this initiative will represent a serious threat to Bermuda's existing reinsurance market in the short term," Cox added.

Bermuda's population of 65,000 is around 10,000 more than the Cayman Islands, made up of Grand Cayman, Cayman Brac and Little Cayman.

- CMC