Deregulation within the Japanese insurance industry may mean increased business in the local captive insurance market.

Last week Premier Jennifer Smith met with Kuniaki Atarashi, president and CEO of New Network Insurance Inc.

With the giant Sumitomo Corporation, NNI formed Bluewell Reinsurance Co.

(Bermuda), the first rent a captive designed for Japanese corporations in 1999. NNI's sponsors include such influential far east companies as Daiwa Business Investment and Tokyo Venture Capital.

Japanese insurers eye new Bermuda link Rent-a-captives are companies formed around a compartmentalised structure by other companies for the reinsurance market.

The companies share resources for actuarial, accounting, underwriting, and legal services.

Bluewell is capitalised at 326.3 million Japanese Yen and once it is on the NASDAQ Japan or Mothers Japan next year, intends to increase its capitalisation to one billion Yen.

Bluewell is managed by Zurich International (Bermuda). Mr. Atarashi, a venture capitalist, intends to make captive and rent-a-captive structures a common insurance practice in Japan.

He is also intent on increasing Bermuda's profile among Japanese investors.

When asked why he chose Bermuda as a base for the captive, Mr. Atarashi said: "The captive industry in Japan was deregulated recently and it is growing.

And in the captive industry, Bermuda is the best place.

"Zurich International can provide a quality service,'' he added. "And ZI understands the Japanese business style.'' During his whirlwind four day visit, Mr. Atarashi and NNI general manager Yoshiaki Nishikata also met with Finance Minister Eugene Cox and ministry officials to discuss his company and the potential benefit for the Bermudian and Japanese economies.

Mr. Atarashi also met with reinsurance industry leaders from KPMG, ACE, American International Group, XL, Appleby Spurling and Kempe, and Registrar of Companies Jeremy Cox.