International businessmen fear the Island's image could be damaged by the Bermuda Fire and Marine controversy.

Finance Minister the Hon. David Saul made the claim to the House of Assembly on Friday.

It was natural everyone should be concerned about anything that may affect Bermuda's image, Dr. Saul said.

He spoke after being tackled on the issue by Shadow Finance Minister Mr.

Eugene Cox.

Mr. Cox asked Dr. Saul what would be done to allay fears of local policyholders of BF&M.

BF&M is the breakaway company of Bermuda Fire and Marine Insurance Company Ltd, which has gone into voluntary liquidation.

It has been reported that some overseas creditors of Bermuda Fire and Marine may sue BF&M to recover money they claim they are owed.

It is feared that if any action is started it could have implications for local policyholders.

Mr. Cox said a Congressional sub-committee in America had recently been formed to look at the insurance industry.

But Dr. Saul replied: "I must say at the start there has been no `recently announced' Congressional sub-committee looking into Bermuda's insurance affairs.

"Congressional committees are very much a part of the legislative process of the United States and one such committee has been looking at the insurance industry, both in the United States and overseas, for many months now.

"Representatives of the Bermuda insurance industry have made representation on several occasions, both at the request of the committee and on their own initiative, and will no doubt do so again in the future.

"There is absolutely no indication that Bermuda's insurance market has been singled out for any special attention.'' Dr. Saul said provisional liquidators had been appointed for Bermuda Fire and Marine.

They were intent on "working out a scheme of arrangement which will be in the best interests of all creditors''.

Dr. Saul pointed out Bermuda Fire and Marine was concerned strictly with international business.

BF&M, with its subsidiaries, BF&M General and BF&M Life, were responsible for a "completely separate book of domestic business''.