century, a panel at the Bermuda Insurance Symposium heard yesterday.

And chairman and CEO of Mutual Risk Management Ltd., Mr. Robert Mulderig, said that Bermuda will maintain its dominant share of the market.

He said: "The captive market will expand by 20 to 50 percent by the year 2000. I mean growth in terms of premium volume. I believe that Bermuda will probably increase its market share, in terms of premium volume.'' Mr. Mulderig said this will also come about as a result of new products that will include the securitisation of certain insurance products.

The panel discussed increased regulation for captives and the fact that workers compensation reform will continue.

Mr. Mulderig noted the clear trend toward increased specialisation in the insurance business, leading to the securitisation of the industry. More capital will be attracted by the specialised lines vehicles.

Another trend was the fact that businesses were increasing their retention levels.

Mr. Mark Angers, executive vice president for risk management services at Lockton Companies of Kansas City, Missouri, said that experts had predicted that there would be 4,000 captives by the year 2,000.

He said growth was flat in the five largest domiciles during the years 1988 to 1993, but there has been more activity seen in 1994 and in 1995.

Looking at the market from a broker's perspective, Mr. Angers said there would be a decrease in broker-driven captives, as risk managers seek more control.

While Bermuda had an excellent reputation as a captive environment, Mr. Angers advised that the Island should emphasise user-friendliness and service. Mr.

William Watson, senior vice president of Reliance National Insurance Company in New York, said that there will be a number of programmes combined with adjustments for retentions.

He said that more and more large insurers will be adjusting their own losses in the future.

He said: "There will be a trend in the future of insureds retaining a larger piece of the risk. Over the next five years the regulators will shackle us and the captive will be a vehicle to bring together long term contracts and combined lines.''