Bermuda could attract risk managers and other insurance buyers here for an annual conference, showcasing the Island as the world's leading captive insurance domicile.

Key issues relating to captives will be brought to the fore during a conference this May at the Princess Hotel, organised by the UK-based IBC Group Plc.

IBC's Bermuda Captives Conference Advisory board includes Alan C. Cossar, president of the Bermuda Insurance Management Association, and executive director of captive manager, Alexander Insurance Managers Ltd.

Mr. Cossar said, "This will be the first one that the IBC has held in Bermuda, but I think that they may like to make it an annual event. They have been holding a health care conference in the Cayman Islands annually.

"This should be a good conference because the IBC have generally been successful in attracting people to their events. I believe for the May conference they are expecting 100 to 125 people.'' Premier David Saul and Registrar of Companies, Kymn Astwood, are both scheduled to speak during the three-day conference, the latter on the development and current state of the Bermuda insurance market.

Chairman and CEO of Mutual Risk Management Ltd., Robert A. Mulderig, will moderate a discussion on the rent-a-captive alternative.

Senior vice president of Sedgwick Management Services (Bermuda) Ltd., Peter J.

Willitts, will discuss the evolution of captives and what can be expected from them in the future.

KPMG Peat Marwick partner in Bermuda, James W. Blankenship, will speak on the topic of combining tax, regulatory and other legal considerations in structuring and operating a captive programme.

Will Thornhill, senior vice president, XL Re and XL Risk Solutions, will focus on how buyers can access the direct and reinsurance markets, and alternative risk financing.

At least 18 provocative presentations are scheduled, involving 29 prominent captive owners, insurance brokers, managers, accountants, lawyers and investment advisors.

The agenda includes utilising and operating group-owned and rent-a-captives to cover workers' compensation, employee benefits, property & casualty, professional, product and general liabilities.

Mr. Cossar pointed out: "One of the difficulties that these specialised conferences have is being able to pitch it at the right level. This conference provides an optional pre-conference tutorial. It means if you are just considering a captive and are not too sure of the details you could arrive early and learn more about the basics, the day before the main conference begins.'' One of the areas being focused on is new coverages for captive insurance companies, including employee benefits.

Large US employers have been using insurance as a funding mechanism for employee benefit plans. Substantial savings and more investment flexibility are resulting from the use of captive insurance arrangements instead of commercial insurance to fund such programmes.

Conference participants will hear that to meet tax and investment goals of the sponsoring employers, careful planning is required to clear various tax and regulatory hurdles.

Said Mr. Cossar, "The IRS came out with a ruling about three years ago that the employee benefit business would be viewed as third party business by them.

The captive arena in the US has been interested in writing employee benefits in captives.

"One problem that has to be overcome in particular is the ERISA rules, which states that it is the Department of Labour that regulates employee benefits.

It is a hot topic within the industry, with the larger employers more interested in it.

"The conference has a good spread of topics to attract a wide range of attendees.'' BUSINESS BUC