Bermuda's up and coming elections and the domestic issues impacting its reinsurance industry have received prime coverage in the UK publication Insurance Day.

It claims that while the relationship between local Bermudians and international businessmen has been strained in the past, there now seems to be a general acceptance of the financial services community on the Island.

But, it questioned, with the general election just around the corner on December 18, should Bermudian reinsurers be concerned about a change of heart?

The publication quoted one source, who reckoned that while Government recognises the importance of the insurance sector to Bermuda, at the same time some of the executives running these companies are seen to be making lots of money, which does not go down well with other parties.

Insurance Day pinpointed fears raised at the beginning of the year over reinsurance professionals being sent packing once their six-year visas expire, with a "Bermudian underwriter" claiming Government only created the policy with the aim of Bermudians taking the place of ex-pats, but, in many cases the locals do not want to do, or indeed, are not qualified to do those jobs.

Inside, it honed in on the whole political issue, claiming the Island's reinsurance leaders are closely watching the local political scene in the run-up to what has started off as a "mud-slinging general election in the mid-Atlantic island".

The authoritative publication on insurance went on to say there has been a great deal of disquiet from Bermuda's big businesses about the political climate following restrictions on work permits and allegations of corruption and cronyism within the PLP government.

It cited Premier Ewart Brown as labelling the UBP as "morally bankrupt" and its leader Michael Dunkley of engaging in "pious self-serving meanderings", but Mr. Dunkley told Insurance Day: "We have not risen to the bait."

Insurance Day added that businesses have also been worried about anti-foreigner rhetoric used by Government, despite, according to its own 2006 statistics, two out of three accountants, 87 percent of all actuaries, 56 percent of underwriters, 57 percent of computer programmers and 36 percent of lawyers being guest workers in its country's workforce.

Furthermore, it said moves to limit the number of foreign workers with cars and the amount of time they can stay, as well as restrictions on locals with foreign spouses wanting to buy property have been seen as less than welcoming in the eyes of the big insurers and reinsurers, while almost half of the guest workers with six-year work permits expiring this year expected to leave the Island in 2007.

Imported workers have even been deported for speaking out against Government and foreigners, and locals report a growing xenophobia, the publication added, which allied to talk of becoming an independent nation, has unsettled the country's re/insurance world.

Mr. Dunkley is quoted by Insurance Age, as saying that his feeling was the international business community had lost its trust in Mr. Brown and, in a letter to companies in May, vowed to abolish the controversial work permit term limits and bring in legislation to update Bermuda's laws and allow prosecutions of those involved in the Bermuda Housing Corporation investigation that Mr. Brown and other members of his cabinet have become embroiled in.