Making various entry-level insurance roles closed-category positions is “a solution in search of a problem”, according to senior industry sources.

Jason Hayward, the Minister of Economy and Labour, announced the change last week, arguing: “Avenues for success must remain available for Bermudians, and employment opportunities such as these must remain accessible.”

Three industry sources, who each asked not to be named, believed the move was unnecessary, as locals already fill these roles and the change “sends a bad signal” to affected employers.

The change took effect on Tuesday this week. As described by Mr Hayward, the roles brought into the closed category — effectively barring employers from hiring from overseas to fill them — include:

• Entry-level underwriting administration and underwriting roles: which may include underwriting assistance, assistant underwriters and trainee underwriters, etc

• Entry-level insurance claims roles: which may include claims assistant and claims associate, etc

• Entry-level brokerage roles: which may include broker assistant and junior broker.

Mr Hayward said in a statement on September 3: “Recognising the critical role the insurance and reinsurance sectors play in our economy, we are taking steps to ensure that key entry-level positions in these businesses remain available for our people.

“Many Bermudians have experienced notable success in these industries and can directly link their success to the entry-level opportunity they were provided.

“We consulted industry associations and clarified that the intention here is to protect the entry-level roles for Bermudians.”

One industry source, after consulting several peers, said none of them could think of any work permit holder in any of the affected roles. The source added: “I don’t believe we should layer on new rules for things that are not a problem.

“It sends a very bad signal to be putting roles in the underwriting and broking arena into closed categories, in my view, because none of those need really to be on island any more.”

The source mentioned a scenario in which a start-up company with its own unique underwriting system could look to enter the Bermuda market with staff familiar with that system.

“Not every company has the luxury of training an underwriting assistant from day one — so we are making Bermuda less attractive for start-ups and effectively suggesting they put their operations outside Bermuda.”

Another source agreed that the policy seemed unnecessary, given that locals filled these roles anyway. And the source suggested the move was ill timed when many companies were exploring the use of artificial intelligence to undertake a range of entry-level tasks.

A third re/insurance source warned unintended consequences could result from a misunderstanding of what is an entry-level role — assistant underwriter is not an entry-level position in all circumstances, for example.

“I do think the risk is that you end up with fewer entry-level roles because you’ve made it more complicated to do business here,” the source added.