Island become a leader in the market for the convergence of insurance and capital markets -- a process also known as the securitisation of insurance risk.

The primary goal of the Insurance Amendment Act 1998 is to allow persons and entities who are not registered insurers under Bermuda law to invest in insurance derivatives.

"The new law, which is believed to be the first of its kind, is intended to remove any uncertainty as to whether an investor in, for example, a catastrophe bond, is engaging in insurance,'' Finance Minister Grant Gibbons said in a statement last night. "It will also simplify and therefore speed up the procedure under which such securitisation programmes are licensed by Bermuda regulators.'' Registrar of Companies Kymn Astwood described the 1998 Act as unique and will clarify various aspects of complex transactions associated with the risk securitisation process and all clear legal opinions to be given on them.

BUSINESS BUC