Bermuda will remain a key player in the insurance industry - but companies based on the Island could seek to access accounts and clients in emerging markets.

That is the view of a report by Standard & Poor's Corp. (S&P) published last week, which revealed that property/casualty insurer growth could be stunted in the next few years as companies deal with long-term trends and global economic conditions.

In addition to the financial crisis playing a significant part in slowing growth, S&P cited other challenges for insurance companies, including global population shifts, natural catastrophes and government regulation. Over the next 10 years, S&P said property/casualty insurers "will adapt" to these issues. But the ratings agency said it believes the industry will "have a hard time achieving rapid growth".

Bermuda's strong presence in the insurance sector was another area S&P evaluated, considering insurers were looking for better access points to reach global markets and customers. S&P noted that other domiciles, such as Dublin, Dubai, India and London have increased their presence lately in the global market.

"S&P believes Bermuda will remain a key insurance market centre - but as emerging markets grow, companies in Bermuda may increasingly look to access accounts and clients in these countries in pursuit of growth," said the report.

Policyholder coverage reductions, an increase in retentions and "negative premium growth rates" in some industrialised countries were contributing to slow growth, New York-based S&P said. According to 2007 US market data, the growth rate of the property/casualty industry was less than one percent. In 2008, S&P said the US property/casualty insurance market declined by almost one percent.

"Most developed insurance markets are relatively well-saturated with global and national insurers, as well as regional and local players competing for business," S&P analysts wrote. "As a result, we expect the majority of premium growth to come from outside the industrialised countries, with companies that have access to emerging markets or better distribution capabilities growing faster than other companies."