private sectors to watch out for disreputable companies attempting to domicile in Bermuda.

At a lunchtime meeting of Hamilton Rotary Club, Mr. Butterfield spoke about "Bermuda's positioning for the future as a leading international reinsurance centre.'' "The public and private sectors must be vigilant in screening persons who will be doing business in Bermuda and the business plans they propose,''he said.

"Since Bermuda has such a good reputation, many people and companies will want to be a part of this network of success, particularly if their own reputation needs enhancing.

"The standards and rules for acceptance into our insurance industry must be kept high and if individuals and companies do not or cannot meet such requirements they should not be permitted to do business in Bermuda.

"We must not allow growth to dilute our reputation for quality.'' Mr.

Butterfield said that as the chief regulator of Bermuda's insurance industry, he attends the US National Association of Insurance Commissioners' quarterly meetings. These meetings have resulted in better understanding in the US of Bermuda's regulatory system, he said.

Staff levels at the Registrar of Companies Department have been increased and the department's technical facilities improved to cope with the growth in the insurance and reinsurance market,'' he said.

"Insurance regulation today has grown to be an enormous responsibility.

Several years ago, Bermuda was termed mainly a captive insurance market, but today, we have attracted not only captives, but many prestigious major specialty reinsurance companies.

"This trend creates many challenges from an insurance regulatory perspective.'' Mr. Butterfield also appealed to the young in Bermuda to prepare themselves for opportunities in the insurance industry. Insurance professionals and school guidance counsellors should inform young people about the industry, he said. He added it should be understood that some insurance expertise should be imported.

"There is a distinct possibility Bermuda will become the alternative risk transfer capital of the world,'' he concluded.

According to figures completed on July 31, 1993, 41 new insurance companies have formed in Bermuda this year compared with 33 formed by the same date in 1992, Mr. Butterfield revealed.

Mr. Butterfiled also quoted 1991 statistics, said to be the most recent available, to demonstrate the health on the insurance industry. Gross Premiums Written totalled $15.4 billion; Net Premiums Written $11.8 billion; Total Assets $52.5 billion and Capital and Surplus $19.8 billion.

Mr. Malcolm Butterfield.