Bermuda's insurance industry, the S&P's insurance rating services managing director said yesterday.

"The process of rating insurance is still being developed, we are not yet at a point where we can rate these types of companies,'' Mr. Alan Levin told the Bermuda Market Briefing yesterday, adding: "By 1995, S&P could have a type of Bermuda insurance rating. It's currently in the exploratory stage.'' Registrar of Companies Mr. Malcolm Butterfield said he believed "Bermuda would stand up very well to such a rating system''.

S&P already rates about 20 of the Island's insurance companies and is the largest rating service for that industry worldwide but what Mr. Levin is proposing is a more detailed look at Bermuda.

But to make an effective review, according to Mr. Levin, there is a need for more public information about Bermuda insurers.

"(We are) still concerned with the secrecy element of Bermuda's regulations,'' commented Mr. Levin.

Bermuda has a secrecy provision related to the sharing of information with other regulators.

Much information is already in the public domain -- especially from publicly held companies like ACE Ltd. and XL Insurance Company -- noted Mr. R.D.

Steinhoff, managing partner at KPMG Peat Marwick.

"Confidentiality is one of the cornerstones of our success (but) we do not entirely disagree with having some flexibility in this area,'' said Mr.

Butterfield.

Mr. Steinhoff said the Insurance Advisory Commitee, which worked with Government on recently announced proposed changes to the Island's insurance regulations, did look at the secrecy provision.

He said the regulations include four insurance licensing classes, with stepped up requirements for all companies except single parent captives. He said insurers in classes three and four noted their financial information is available to clients and therefore in the public domain.

"Regulations won't make it easier to get an S&P rating, we don't let regulators do our job for us but those changes (regulations) do go a long way to making sure there are no negative surprises...clearly just looking at financial records -- an increase or decrease in assets -- does not necessary reflect the quality of underwriting,'' Mr. Levin said.