Vexed Bermoothes

Risk & Insurance magazine has a frightening article about Bermuda’s prospects.

The article points out that some of Bermuda’s problems are external, including the global financial turmoil and tax clampdowns.  But many of the deepest wounds are self-inflicted by our Government through its bouts of inexplicable hostility towards the business sector and general negligence of its needs.

For 15 years, not a single major insurance or reinsurance company startup with more than $1 billion in capital had occurred anywhere in the world but Bermuda. Now, the words “anywhere in the world but Bermuda” have taken on a different meaning.

The list of companies that have pulled back from Bermuda in some way over the last year is long and growing. Ace, Foster Wheeler, Tyco, Covidien, Weatherford, Paris Re, Flagstone Re, and Hiscox are just a few.  Even more distressing is this insight:

An industry source told Risk & Insurance in mid-December that four more insurance companies with employees on the ground in Bermuda were set to do the same, before long. The source says that three London companies that had intended to move to Bermuda canceled their plans, and that two new companies slated for the island were instead starting up elsewhere.

Bermuda has been on a gravy train for 40 years, and the prosperity of our community is now at great risk.

When times were good, Government treated the international sector with contempt – and now that times are bad, there is little sense of partnership.

Beyond some PR puffery, Government has said very little at all about international business or our overall economy in these rough times.  That’s incredible.  The lack of honest dialogue and overt signs of cooperation with our customers just adds to the great worry about Bermuda’s future.

It’s time for Bermuda to stop denying the bad news, or writing off any and all criticism as partisan troublemaking.  It’s time to start demanding some answers, a plan, and some performance.  Risk & Insurance sums it up:

When should Bermuda stop asking “Could something bad happen to us?” and start saying “Something bad is happening to us”?

Right now.