Log In

Reset Password

Call for Bermuda to move on global tax plan

An investment fund manager has called on Bermuda to coordinate with other countries in formulating a response to the push for a global minimum corporate tax.

The call came during the virtual Artemis Bermuda ILS Executive Roundtable this week, from Richard Lowther, Managing Partner, Integral ILS.

He was responding to a question from Artemis owner and editor in chief Steve Evans, who asked panellists if there was room for greater innovation in the regulatory and legal structuring field to position Bermuda at the forefront of the next wave of ILS growth.

There were several more targeted responses, but Mr. Lowther was the last to speak.

He said: “Innovation is always essential to sustaining a competitive advantage. Bermuda has a demonstrable track record of reinventing itself after market dislocations.

“On a continual basis, the island is evolving the regulatory and legal framework with innovations such as the recent Incorporated Segregated Accounts Companies Act and the Collateralised Insurer licencing framework etc.

“One immediate focus for Bermuda should include joining with the many other like-minded countries in formulating a response to the recent G7 communiqué calling for the implantation of a global minimum corporate tax.”

He is the former managing principal of Hiscox Insurance Linked Strategies, the ILS fund manager he helped form for global insurance specialist Hiscox.

He was also the chief operating officer and a founding member of AlphaCat Managers Ltd, the ILS fund management subsidiary of Validus Reinsurance Ltd.

He continued: “It is honestly quite astonishing that the largest economies in the world would agree to cede sovereignty over their corporate tax systems.

“Bermuda, over the decades, has paid billions of dollars to satisfy insured claims in the wake of massive insurance events.

“Tax increases at the corporate level will most assuredly be passed along to the consumer exacerbating the protection gap, not reducing it.

“Bermuda re/insurance companies have substantive operations on the island, which should help demonstrate that significant business is generated here. The appeal of Bermuda is not solely related to tax.

“Bermuda is the home to one of the largest global re/insurance markets, has developed infrastructure, proximity to the US and strong regulatory framework.

“Bermuda needs to continue to promote the fact that tax efficiency does not mean tax secrecy. Many are unaware that Bermuda has dozens of Tax Information Exchange Agreements (TIEAs) with major OECD countries.

“This framework for exchanging information between countries helps enforce tax laws and demonstrates the island’s commitment to transparency.”

Integral ILS is an independent alternative fund manager focused on insurance-linked strategies.

The company wants to drive further evolution in the ILS fund management model with an investor-focused fiduciary that also benefits from a long-term and stable alignment with industry leaders in reinsurance and insurance underwriting and distribution.

Richard Lowther, CA, CPA is a Co-Founder and Managing Partner of Integral ILS

You must be Registered or to post comment or to vote.

Published August 18, 2021 at 11:19 am (Updated August 18, 2021 at 10:17 pm)

Call for Bermuda to move on global tax plan

What you
Need to
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon