Finance Minister Paula Cox called on Bermuda's captive insurance market to keep up the good work in the face of stiff global competition and to maintain its place as the world's leader in that field.

Opening the Bermuda Captive 07 at the Southampton Fairmont resort, Ms. Cox told delegates to make the most of the conference and to help boost the profile of the Island as a domicile centre of excellence for captives.

But she warned that Bermuda has to keep on its toes to avoid being caught up by other world markets.

Ms. Cox said that when she thought of Bermuda's captive market, the phrase "growing from strength to strength" comes to mind.

"This conference is certainly very much an opportunity for Bermuda and anybody who is anybody is at this conference," she said.

"We constantly assess and reassess what we need to do to reinvent our model to make it sharper and more nimble and Bermuda as a commercial centre has a solid infrastructure and enviable our infrastructure is especially conducive to international business, however we would be foolish and rash to even consider that we could rest on our laurels and to rely on our existing reputation.

"This not withstanding that Bermuda's growth rate in the insurance and reinsurance sector has completely outstripped some major global markets at times."

However, she sounded a note of caution to beware of the threat posed by competitors in the global marketplace and to stay one step ahead of the game.

"Complacency is not an option and we keep where we are and we must continue to be productive and keep building on what we have as a jurisdiction so that we can earn favour with our various constituents," she said.

"Our focus is to strike the right balance as a jurisdiction and our strategy has been protected and Bermuda has the staying power and the complete model that is going to be efficient and effective.

Ms. Cox went on to explain why Bermuda is leading the way in captive insurance.

"We are ranked as the world's leader in captive insurance and we have one of the largest reinsurance markets in the world," she said.

"Captives are a key component of this financial services industry, not withstanding the breadth and depth of our insurance and reinsurance sector, and the statistics will bear this out - Bermuda is still the domicile choice, but we clearly face competition from other jurisdictions, and we achieve this status and recognition through following a strategy that places a high emphasis on quality and, as a result, most of the 4,100 countries in the world have a presence in Bermuda.

"Our insurance market has greater depth and has become a focal point for insurance managers, brokers and underwriters.

"The volume of premium has increased and certainly the significant levels of premium that come to Bermuda is another acid test of our credibility as a jurisdiction.

"It signifies that the buyers of insurance and the consumers have extreme confidence in the Bermuda market.

"We are the largest captive domicile and, I daresay, the most competent - our share of the world captive market is approximately 30 percent of the world's captive."

And she outlined her vision for the future of captives on the Island.

"We are known as the risk capital of the world and, as such, this footprint requires us to quickly respond to an ever-changing competitive environment," she said.

"We want to continue to grow the captive business and we want to continue to be thought of as thought leaders in this industry and we want to continue to ensure that our supervisory and complete oversight is risk-based and in order ensure that Bermuda's infrastructure remains conducive to captive business, including the legal framework, the company's infrastructure, the level of supervision and the quality and standard of service provided.

"Our pluses, among other factors, are that we have regulatory regime that facilitates the speed to market, proximity to the US, strong local expertise and good distribution and this combines to create a winning formula.

"Innovative domiciles can make a big difference in a complex market and in today's market its is even more important to choose the more experienced domiciles - Bermuda has a mature and fully integrated infrastructure of insurance and reinsurance and is a capital market leader force with one of world's largest banks."