Further credence has been given to reports that corporate leaders within Bermuda's $64 billion reinsurance sector are reviewing exit strategies from the Island because of growing concerns about labour and immigration regulations and delays and the current political climate.

The multi-billion dollar industry is the Island's main economic pillar, but that is now threatened by reports that senior executives have reached a point where they are so unhappy with developements in Bermuda they are prepared to talk, albeit informally, about increasingly outsourcing jobs or even relocating elsewhere if things worsen.

Anti-expat rhetoric, a pro-Independence stance, the threat of work permits being "pulled" or overly delayed and work permit time limit restrictions on skilled staff are reasons for growing concern amongst CEOs and executives according to two critical articles printed in the UK press.

Many of the concerns were spoken about at a cocktail reception attended by some 500 people at the end of the Rendez Vous reinsurance summit in Monte Carlo, Monaco, earlier this month.

The Bermuda-hosted reception has been held for the past 27 years and one of the organisers, Bermudian businessman Robin Spencer-Arscott said he was saddened to hear mumblings of discontent from a number of senior figures within the industry.

However, he does not believe there will be an exodus of companies from Bermuda any time soon, but said it was something that needed to be taken seriously.

"They are not talking about walking out the door tomorrow, but sadly they are talking about this," he said.

Earlier this week Premier Ewart Brown revealed a new policy that aims to link three year work permits with a local worker "shadowing" the work permit holder to learn how to do the job and then assuming the role when the three year work permit expires. He used the fictious charactors "Sven from Sweden" and a Bermudian "Johnny" to illustrate the new policy when he spoke at the Inter-American Economic Council in Washington DC last week.

Mr. Spencer-Ascott, president of RSA Services, said: "These are billion-dollar companies and they should be able to hire who they want. Yes, they should train Bermudians but Bermudians must also know that they can't just walk in and get a job simply because they are Bermudian."

He said 80 percent of the people he has hired over the years have been Bermudians and have proven to be competent and valued employees. But he said it was all about finding qualified individuals.

"There can't be a dictate that your work permit is going to be gone after three years. If business can get good qualified Bermudians they would hire them because they are local, they know about life on the Island and there is not the worry about term limits."

The validity of the reported claims have been further backed up by two other attendees at the summit in the European Principality, insurance trade magazine editors Helen Yates and Mark Geoghegan.

Ms Yates edits London-based Global Reinsurance, which is part of the USA Today newspaper publishing group Gannett.

It was that magazine that this week ran extensive coverage of the various comments made by Bermuda reinsurance executives at the Monte Carlo event, which were reported by journalist Mairi Mallon.

She said: "I was also in Monte Carlo and spoke to some senior Bermuda executives who echoed the comments Mairi used in the article.

I've also done a couple of interviews in the past with people who are willing to go on record and air their concerns.

"I'm not as well connected as Mairi but I have heard many similar comments to those she quoted in that article. It's pretty obvious why these senior guys won't go on record. They've already seen how the Premier reacts to criticism and it could have a detrimental impact on their companies as a result. I wouldn't be surprised if some have have been advised by their legal counsel to be careful about what they say."

While Mr. Geoghegan, editor of Reinsurance and Fac Magazines in the UK, who was also in Monaco, said: "Bermuda-based execs won't go on the record because frankly they are scared of being singled out for unfavourable treatment on the work permit issue or the status of their reinsurance licences.

"Non-Bermudians are even loath to moan out loud about basic gripes like poor quality, high-cost housing or the availability of school places, lest they or their business suffer reprisals.

"And given the apparent lack of separation of powers between the executive and law enforcement agencies uncovered by the recent BHC leak case, the insensitivity of recent government comments (dubbing foreign workers 'Sven the Swede') and the potential threat of instant deportation, who can blame them?"

Earlier this week The Royal Gazette reported that Reinsurance Magazine had placed Dr. Brown 14th in its reinsurance "Power List" but warned: "The pro-independence and anti-expat rhetoric is scary, the work-permit situation chaotic."

According to Mr. Geoghegan, executives in Monte Carlo would not talk on the record but gave details about their Island exit plans down to minute detail when chatting informally and said they spoke with such detail that it was "as if this were another one of the realistic disaster scenarios that have been run through many times - like a Miami Hurricane or a California earthquake! The worst case scenario is planned for and costed by them all These guys deal with risk - and that includes political risk - and HSBC has branches everywhere these days."

Referring to the October 29 Privy Council hearing that will decide whether a media gag on reporting from leaked Bermuda Housing Corporation investigation documents can continue, he said: "Of course we in the international media are all now looking forward to the Privy Council hearing with great interest, when if the Government had kept silent, we may never have noticed."

He added: "Back to Sven - why would he want to stay in Bermuda if he had to spend all day training Johnny on top of doing his own work?

"I'm really also not sure that people appreciate the extreme hours that a lot of the Svens put in - all these sad bachelors doing 12-hour days and living for the odd weekend on the mainland.

"They can rationalise it because they know that they are on the career acceleration path if they head to Bermuda and they do definitely get well paid. UK citizens also get the tax-free break (although US citizens have no such perk).

"Sven also knows he will eventually get his life back when he gets back to New York, London (or Stockholm!). But I'm not so sure the Sven bashers really would want his job if they had to take all the rest that went with it."

World Insurance Forum chair Mr. Spencer-Arscott said this year's post-summit reception was the first time in nearly three decades he had heard "a bit of concern about negative items."

He said: "You have to take some of it with a pinch of salt but you also have to take notice. There is a general concern about stumbling blocks with work permits and things.

"But I don't think the companies will leave tomorrow or next year. However, if they encounter problems bringing in senior underwriters, actuaries and the like, then it will make them think.

"Ican see their distress. But Bermuda is a wonderful place to live and we have no more problems that the rest of the world. It is going to take a lot for some of these companies to go but we also have to improve things here and not threaten people that they have to do this or do that."

He admits that for some of the newer start-up companies a relocation would take a matter of days, and simply involve a breaking of their leased offices, while for the more established players it would take significantly longer.

"But I'm an optimist and Ithink things will work out. I was disappointed to hear this stuff, but I tried to allay fears. We have been forewarned."