Insurance executives will tackle developments in their industry, including the effects of OECD and other international tax regulation initiatives this week as the fifth annual International Captives Congress kicks off at the Fairmont Southampton Princess Hotel today.

The event, presented by IBC USA Conferences, will bring many executives and prominent speakers from the captive industry together until Friday.

Captives are set up by large companies, ranging from the African Methodist Episcopal Church to General Electric, to reinsure their own risks.

According to Jason Hien, a senior marketing manager at IBC, between 225 and 250 people are expected to attend the conference. Most delegates will come from Bermuda and the eastern United States.

"A lot of people (involved with captives) see the conference as the global meeting place," he said.

Conference registration begins at 4 p.m. Tomorrow morning, two workshops will be conducted, one to present the fundamentals and captives while the other will discuss customisation of a captive's investment strategy. In the afternoon, Premier Jennifer Smith will welcome attendees to the conference.

The keynote address, "Achieving Consistency through Diversification", will be made on Thursday by ACE chairman and CEO Brian Duperreault. Mr. Duperreault is expected to discuss the challenges of operating in markets with hard and soft pricing, the current state of the market and trends toward consolidation.

"People are looking at what is going on in the economy," said Ann McGrath, the director of new products and events at IBC.

Although insurance premiums are increasing, "people want to know what the other business opportunities are available," Ms McGrath added."People are looking not to put all of their eggs in one basket."

She said the speakers would also address the findings of the OECD and the Financial Action Task Force and discuss the implications of proposed legislation in the US that could end tax advantages for Bermuda-based insurers.