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Class of 2005

In the wake of Hurricane Katrina and the massive insured damage it has caused, it is increasingly likely that Bermuda will experience a new wave of reinsurance companies setting up on the Island.

Five or six companies have already received licences from the Bermuda Monetary Authority, and it seems likely that that the "spawn of Katrina" will now follow the well-trodden path established by the Class of 2001 formed in the wake of 9/11, the Class of 1993 that followed Hurricane Andrew and the grand-daddies of them all — ACE and XL — which were formed 20 years ago during a capacity crisis in the excess liability insurance area.

To some extent, the new companies are replacing insurers that have been felled by the surprisingly large claims that Katrina left in her wake. And the arrivals will provide new opportunities for Bermudians in insurance and a wide variety of other professions. That's all to the good. Who can say which of these businesses will become a global giant along the lines of ACE or XL?

But with reports of the new businesses scrambling for office space, staff, IT support, accounting and legal services, it seems likely that more businesses are being created than are disappearing.

And that means the Island will almost certainly see a fresh influx of employees from overseas, all in need of housing, transport, education for their children, health services and the like.

With Government tackling sustainable development, now is the time to be asking whether the Island is ready for further strains on an already overtaxed infrastructure and whether the Island can maintain the balance between growth and over-development.