Headline: Bermuda: the new standard setter? Source: Euromoney Date: January 2002 Author: Nick Evans
The Bermuda story really kicked off in 1986 after an explosion in legal liability claims in the US in the mid 1980s – in particular relating to asbestosis – caused a severe capacity crunch which meant that US industrial companies were virtually unable to buy high-level insurance at any price.US insurance broking giant Marsh & McLennan and a group of Fortune 100 companies joined forces to form two Bermuda-based vehicles – Ace and XL – that would self-insure these high severity/low frequency risks. In a sense they were group captive companies to the commercial insurance world at large. |