Government has said that not only will there be dozens of jobs created by the new insurance companies directly, but also jobs will be created indirectly by the positive knock-on effect on the economy.

Up to 210 new jobs are expected to be created by the boom in new insurance companies setting up on the Island, according to latest estimates made by The Royal Gazette.

And Finance Minister Eugene Cox said that these seven new companies with $7 billion in new capital will help both the world and local economies in a difficult economic climate.

Mr. Cox said: “It is difficult at this early stage to make precise predictions, it is clear that this market development will benefit Bermuda and Bermudians via the creation of new jobs, both directly within the insurance sector and indirectly, via demand for additional office space and via a resultant increase in consumer spending.”

Estimates for the jobs being created by the start-ups vary between 140 and 210, with many not having decided on a final number of staff they will employ.

Many of the jobs created will be filled by foreigners but most of the companies have pledged to train Bermudians in the specialist fields.

“I have been extremely gratified to see how new and existing Bermuda companies have stepped forward to be part of the solution to the global problem of the shortage of insurance and reinsurance capacity in the wake of the tragic events in the USA on September 11, 2001,” said Mr. Cox. “Government has been pleased to support this market response and is convinced it will be beneficial to both the global and local economies.”

Jeff Conyers, chairman of the Bermuda International Business Association, warned that there had to be a balance and make sure that the moves to Bermuda were in the best interest of everybody on the Island.

“We are very fortunate in Bermuda to have companies that want to locate here,” said Mr. Conyers. “But we have to be vigilant and balance it out. You don't want to look a gift horse in the mouth, but you have to make sure there is a balance which is in the best interest of everybody.

“Obviously we are not talking about a huge number of jobs, but there has been a huge influx of capital and we are hoping it seeps into the economy of Bermuda.”

Aaron Adderley, marketing manager of BIBA, also welcomed the move of the insurance and reinsurance companies to the Island, but also sounded a note of caution about making sure that the infrastructure could cope.

And he said it could be a benefit to Bermudians wanting to go into the insurance sector, as there would be more scope for them in the future.

Mr. Adderley said: “It is a good thing, and certainly Bermuda has benefited from the thriving international business sector. But just as long as Bermudians benefit from the growth.

“Many of the companies are making a concerted effort to go after Bermudian talent. Obviously there is a need for foreign expertise and the thing is to create a balance.”

He added that the positive press that international business was getting at the moment was good, and that the boom gave Bermuda economic opportunity and it would also be a good chance for Bermudians looking to go into accountancy or legal areas. “It is a good opportunity for people looking for white collar jobs.”

He added: “There will be a trickle down in the economy. There will certainly be a need for office space, but we have to make sure that we are not taxing the infrastructure.”

Mr. Adderley said that while it was in Bermuda's interest to take all this new business with an economic downturn on the horizon, the growth has to be managed.