Corruption allegations will not see insurers flee Bermuda

Senior insurance figures have insisted that the political unrest unfolding on the island of Bermuda will not impact on the insurance industry.

The island’s premier, Dr Ewart Brown, and other members of the Progressive Labour Party (PLP), have been drawn into allegations of corruption – allegations which they strongly reject.

But, many in the business community has dismissed speculation that the scandal, which dates back four years, might threaten the stability of the market.

The scandal surrounds the disappearance of $10m from the Bermuda Housing Corporation, which initially led to the conviction of Terrence Smith, who had been running his own business from his BHC office.

One senior Bermuda insurance figure, said: “There won’t be any fall-out for the insurance industry it just looks very unattractive. It is business as usual.”

Another senior source added: “This was mentioned briefly at an insurance summit in Bermuda last week and was roundly dismissed as having nothing whatsoever to do with the insurance industry.

“If there has been wrongdoing, as there occasionally is, then it will be addressed in the appropriate manner by the authorities and the repercussions were thought to be minimal.”

But, Robin Spencer-Arscott, chairman of XL sidecar Cyrus Re, said: “When things happen here they happen right on our doorstep.”

He added: “All the major companies here have boltholes elsewhere and they’re not going to take this dictatorship-type approach.”