NearShore Americas is reporting Bermuda, which it describes as a global leader in the insurance industry, is eying Latin America for expansion opportunities.Writer Tim Wilson, focusing on the captive tranche of the industry, said Bermuda has always been a leader in captive insurance.He described a market where global firms establish subsidiaries to provide insurance services back to the parent organisation and their own customers, quoting the statistic that 90 percent of Fortune 1000 companies are insured by their own captives.“Bermuda has held its own in the 21st century, with annualised growth of 1.3 percent and a stable political system.However, there is some concern, particularly in the highly competitive captive market, that from 2007 to 2011 productivity in Bermuda declined 0.7 percent annually, whereas the G7 average saw yearly average growth of 1.1 percent.“To stay in the game Bermuda’s captive market is looking for opportunity among mid-market companies and those farther afield, with Latin America seen as a real opportunity,” said the online news site, which covers the outsourced services industry based on web traffic, and at the trends driving Americas-based investment and outsourcing.It continued: “In Latin America, semi-governmental agencies, or companies guaranteed by a government, tend to dominate the captive market, with a heavy focus on commodities.“Private sector diversification into other products and services is nascent, but is expected to emerge in the coming years. So far, there is no Latin American player of any significance.”Dr. Eugene Durenard from Capital G Investments is quoted as saying the ‘one-stop’ option from Bermuda and the Cayman Islands is the ‘best bet’ for Latin American companies looking for a captive set-up, noting that “they already have a track record in establishing some very sizeable captives with Latin American ownerships.”But NearShore Americas notes: “With that in mind, however, Barbados is also a viable alternative — the island nation has over five percent of the global market and about 250 captives.”Citing the particular impact of global warming, the article says: “This form of risk management is becoming increasingly popular,” and added a quote from Hale Stewart of HS Captive Mangement: “Insurers and reinsurers must now include the longer term effects of global warming.“This is particularly a factor in the United States. If you look at the wind storm deductible in Florida now you can see that it is very high — this is directly attributable to hurricanes.”NearShore Americas also cited the increasing complexity of the industry as an important shaper, requiring an increasing level of expertise to “deal with captive management strategies and governance issues, often in the context of insurance-linked securities and special purpose insurers.“This is a scalable model given that it is not labour intensive and only requires, for the most part, that the captive managers be resident in the jurisdiction.“But the labour itself is highly skilled: a full service firm will provide deep management capabilities that involve a complex understanding of legal, tax, and insurance issues.”