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Bermuda was founded in 1609 by Admiral George Somers, commander of the English ship Sea Venture, which wrecked near the island. Word of the discovery of the island-which had first been spotted by a Spanish sailor, Juan de Bermudez, in 1515-and its reputation for storms spread rapidly, later inspiring William Shakespeare to write "The Tempest. "
It was almost 250 years later that the island's beginnings as an insurance center could be seen. Some key milestones in Bermuda's insurance history include:
1840: Bermuda Marine Assurance Co. founded. The company insured cargo en route from Bermuda to Philadelphia aboard the ship Liberty.
1947: American International Co. Ltd. was formed in Bermuda to write all of AIG's non-life business. An act of Bermuda's Parliament provided for the company's formation.
1948: International Reinsurance Co. becomes the first reinsurance company to operate in Bermuda.
1963: Fred Reiss founds Bermuda's first captive management company, International Risk Management.
1966: The introduction of the Exempted Undertakings Tax Protection Act assures freedom from any Bermuda tax computed on a company's profits or income until the year 2016.
1968: Marsh & McLennan Cos. Inc. forms the captive manager Marsh & McLennan Management Services (Bermuda) Ltd.
1971: Oil Insurance Ltd., formed by a group of oil companies seeking coverage for their North Sea rigs, is Bermuda's first group captive. OIL issues its first policy in January 1972.
1971: Bermuda officials, undertaking the first informal count of captives, find that as many as 150 captives are incorporated there.
1972: Hopewell International Insurance Ltd., a property risk pooling facility, is formed to allow captives to access reinsurance markets.
1977: Mutual Risk Management is founded in Bermuda as a captive manager. The company would become the world's largest provider of rent-a-- captive programs.
1978: The Bermuda Insurance Act is passed. The Act is established to increase Bermuda's credibility as an insurance center...