New insurance legislation which is up for approval in Barbados will only deal with domestic companies and will not impact on the growing captive insurance industry in that Caribbean country.

That was the message from former top insurance regulator Mr. Wismar Greaves, who this year began heading up the government-owned domestic insurer, The Insurance Corporation of Barbados.

Barbados earns US$50 million from its captive insurance market. Many of the companies are Canadian after a tax treaty between the two countries was signed ten years ago.

Barbados officials are still waiting to find out what effect new Canadian legislation will have on their captive market. That was at least a subject on their minds during the just recently completed Canadian RIMS (Risk Insurance Management Society) Conference.

Mr. Greaves said yesterday: "I am not certain yet what the impact of the changes will be on our market. We feel that Barbados will still remain attractive for Canadian business.

"From all reports, business is still growing.'' Mr. Greaves is in Bermuda attending the Eighth International Reinsurance Congress hosted by Coopers & Lybrand in association with Hawksmere.

But he is also using the trip to meet with his company's reinsurers, Partner Re and Mid Ocean Re. He is accompanied by Mr. Dennis Bradshaw, the deputy general manager of the company.

His company took advantage two years ago of the movement of capital to Bermuda to obtain reinsurance coverage here.

Mr. Greaves was the insurance supervisor in Barbados until the start of this year with responsibilities for the 250 licenced captives.

Barbados is seeking a niche in an expanding market of business opportunities.

Earlier this year, director of International Business and Financial Services with the Barbados Government said: "There are any number of other business opportunities apart from captive insurance, be they foreign sales corporations for US companies, or maybe offshore banks.'' Mr. Greaves said: "The Insurance Corporation of Barbados shareholding is owned 100 percent by the Government. We insure all types of risks in Barbados.

It is a captive for the Government, but we also cover third party risks, all classes of business except individual life.''