The Isle of Man's financial business leaders have played down the region's challenge to Bermuda in their fight to become the world's top reinsurance market.

On Friday reported on an article that appeared in the Insurance Day publication in which the Isle of Man's Finance department's director John Spellman claimed the Irish Sea-located island's flexible tax regime, regulatory system and highly skilled workforce can compete with Bermuda's world leading reinsurance industry.

The claims were met with a wall of silence by some of Bermuda's top financial chiefs, while Bermuda's Ministry of Finance focused on the Island's strengths instead of meeting the issue head on.

But David Vick, chief executive of the Isle's Insurance and Pensions Authority toned down the claims, describing them as "proposals" coming out of a review of the industry.

"These current proposals arise from a review of our various sectors that is just being completed," he said.

"They point to the fact that the Island is well-placed to expand its existing captive and reinsurance bases, given its position as a mature and well-regarded jurisdiction for international insurance business with considerable expertise and experience and also a relatively low cost-base with room for further expansion and development.

"The Island's finance sector is extremely broadly-based and the review highlights the potential for further cross-fertilisation, creating development opportunities for the insurance sector. More detailed work is now continuing."

The two jurisdictions have a history of rivalry, most recently erupting into a dispute over space satellite orbiting rights, and with the Isle of Man's financiers targeting what Insurance Day called Bermuda's present government being viewed as less welcoming to the financial services industry than previous regimes and there being concerns about the ease of getting work permits, according to market commentators, and the issue of affordability of property, according to estate agents, that renewal of hostilities seems certain to be ongoing in the future.