role of the Island's chief regulator.

He knows the job comes with a huge responsibility.

Working closely with former Registrar of Companies Mr. Malcolm Butterfield, now head of KPMG Peat Marwick's insolvency department, Mr. Astwood has been Inspector of Companies for five years and has served as acting Registrar of Companies on several occasions.

Mr. Astwood, 34, has a dozen years' experience in the insurance and reinsurance industry. He is currently interviewing candidates to fill his Inspector of Companies position. His department's major responsibility is regulating the Island's estimated 1360 insurance companies which have amassed $29 billion in capital and surplus.

"While we have many companies on our register it is the insurance companies that receive most of the regulatory focus,'' he said.

Mr. Astwood played a significant role in the creation of new insurance regulations. As Registrar, he assumes the chief administrative role for their implementation.

"One of my main objectives during the first year is the successful implementation of the new Insurance Amendment Act 1995 which divides Bermuda's insurers into four classes. It has been very well received internationally,'' he said.

The new Act updates the 1978 Act which focussed on Captives, since then there have been significant changes in the industry. Currently 13 class four companies -- property catastrophe and direct excess liability insurers -- have been registered with full registration expected to be completed by January 1, 1996 by the department's staff of 22 people. Class one, the captives, are "substantially unaffected'' by the new legislation.

"I believe the amended Act will go a long way to silencing the critics of Bermuda's insurance industry. In many instances the criticisms levelled at Bermuda are the result of individuals not having a full appreciation of how we regulate in Bermuda,'' he said.

In Bermuda the regulatory system is a shared initiative between the private sector and Government, he said. He added competition from other offshore jurisdictions is escalating and changes are necessary for Bermuda to remain competitive.

Bermuda must not only be aware of the competition but also the global regulatory environment, especially the US, he said. "On the US scene legislative initiatives may damage Bermuda's insurance industry,'' he said.

The National Association of Insurance Commissioners (NAIC) is currently drafting a Credit for Reinsurance Model Act which deals with how a US carrier can take credit for reinsurance that they purchase from a Bermuda company, he said. There is a danger, that if enacted, it could be more difficult for Bermuda reinsurers to compete for US business by imposing significant capitalisation and surplus requirements and other securities on non-US insurers. "One of the major responsibilities is to monitor such legislation,'' he said. The latest numbers available from the Reinsurance Association of America show Bermuda as the jurisdiction with the largest amount of premium ceded to unaffiliated alien reinsurers in the US in 1993.

In that year, US clients bought $3.4 billion, or 36 percent of that premium ceded, in reinsurance from Bermuda companies. The NAIC is an association of US state insurance commissioners which generates model laws which it encourages states to adopt. Mr. Astwood, a Fessenden Trott Scholarship recipient, serves on the Insurers Admissions Committee which reviews new company applications and the Acts and Regulations Committee which recommends changes to insurance laws.