vigorously pursuing new types of business from emerging markets in the Far East and South America, the Minister for Labour, Home Affairs and Public Safety, Quinton Edness, said yesterday in opening the Captives Conference sponsored by International Business Communications (IBC) at the Hamilton Princess Hotel.

Mr. Edness opened the meetings on behalf of Premier Pamela Gordon before about 100 delegates, who he described as "some of the best minds and thinkers in the captive insurance industry.'' While recognising visiting participants were here for the business conference, he urged them to spend some time, enjoying Bermuda, its people and the shopping.

The veteran Minister noted the Bermuda market is a spawning ground for the new and innovative products needed by insurance and reinsurance buyers globally.

It is, he said, to a great extent why Bermuda is the leading captive domicile.

It was a result of "hard work, perseverance, foresight and an ability to gauge what the marketplace required and a readiness to supply that need.'' But he added: "Those in the captive insurance business are only too well aware that, when you are number one, everyone else targets you, copies you and tries to do what you do, better.

"There is, then, no room for being complacent and for resting on one's laurels - however well-earned they may be. Bermuda has to remain competitive against increasing competition from markets in the West Indies, in North America and elsewhere and from other captive domiciles which yearn after the impressive market-share Bermuda has developed over the past two decades or so.'' He said it was especially interesting that out of the 97 new insurers that came to Bermuda in 1996, many came from jurisdictions that were not traditional business sources for the Island. They included Canada, Australia, Korea and Central and South America.

He said, "By moving into such markets, Bermuda not only diversifies its captive insurance industry, but it also supplements its current dominance of both the North American and European captive markets.'' Tiny Bermuda is the home to more than 40 percent of the 3,453 registered captives. And 35 percent of the 279 new insurers incorporated in captive domiciles last year, set up here.

More than 1,000, or more than 66 percent, of the 1,470 insurers here in Bermuda at the start of the calendar year were single parent or multi-owner captives. And 51 out of the 97 insurers newly incorporated here last year were licensed in Class One or Class Two. The majority of the 30 Class Three licences were also given to captives.

Mr. Edness described international insurers as good corporate citizens "of the highest order'', supporting the arts, charitable organisations and educational scholarship programmes.

He said, "They infuse intellectual depth to the community. And very importantly, they provide a wide variety of employment opportunities for the people of Bermuda.

"The vitality of this sector of the Bermudian economy also means that people living here continue to enjoy one of the highest standards of living to be found anywhere on the globe.'' But he said, with the relentless pursuit by other captive insurance domiciles, Bermuda must continue to be innovative, far-sighted and maintain a competitive edge.

BUSINESS BUC