Bermuda is battling for captive insurance company business at the RIMS annual conference in Boston — and the technical expertise of the Island's insurance regulators is one of their main weapons.

Several of the inquiries coming in at the Bermuda booth at the Boston Convention and Exhibition Center have been from companies looking to set up captives — entities set up by corporations to provide self-insurance to the parent company.

Delegates from Japan and Australia are among those who have inquired about how to set up a captive on the Island. Bermuda is the world's leading captive domicile — after the United States — with almost 900 active captives.

With many rival captive jurisdictions, such as Vermont, the Cayman Islands and the British Virgin Islands, also represented in the conference hall, Bermuda has to be able to provide immediate answers.

One of those who can do so is Shelby Weldon, the director of licensing and authorisation at the Bermuda Monetary Authority.

"A lot of my meetings over the past couple of days have been with potential captive clients, who are looking at appropriate domiciles," Mr. Weldon said.

"Bermuda is still seen as the premier domicile and a lot of the reason for that is the significant reinsurance sector we have that allows captives to fulfil their reinsurance needs in the local market. That's an advantage for the Bermuda market."

BMA chief executive officer Jeremy Cox said it was crucial for the regulator to have a presence at RIMS to "give the Bermuda perspective from a supervisory position".

"It's important for us to be here to answer questions on incorporation and insurance regulation," Mr. Cox said from Boston.

"Here you can see Bermuda market participants, Government and the regulator — all singing from similar hymn books — if not exactly the same. It shows the commitment on behalf of the jurisdiction."

Financial regulation is being enhanced the world over following a financial crisis that shook the world economy to its very core.

Although banks, rather than insurers, were at the centre of the crisis, insurance regulation is being strengthened, particularly in the European Union, where the new Solvency II regulations are due to be introduced in 2012.

The BMA is striving to earn regulatory equivalence with Solvency II standards to ensure that Bermuda companies doing business in the EU are not competitively disadvantaged.

And with Mr. Cox having a seat at the table of the executive committee of the International Association of Insurance Supervisors (IAIS), Bermuda is punching above its weight in terms of its influence in global insurance regulation change.

"The work that we are doing with the IAIS reflects Bermuda's commitment to higher standards," Mr. Cox said.

"The Authority is being proactive in a way that will benefit the jurisdiction. One, we are a part of the creation of new standards and two, we are able to bring our unique prospective to the table to ensure that the standards created are flexible enough to allow for a jurisdiction like Bermuda."

Mr. Cox said the BMA had made great progress over the past five to ten years and was seeking to strengthen its human resources to continue that progress.

Mr. Cox had a few words on the work of his predecessor Matthew Elderfield, who left last year to become the Central Bank of Ireland's director of financial regulation.

Mr. Elderfield has ruffled some powerful feathers with his tough action against Ireland's battered banks and his decision to put one of the country's biggest insurers, Quinn Insurance, into provisional liquidation.

"The job of a regulator is not just to make friends and to do what is easy," Mr. Cox said. "Our job requires us to take tough decisions.

"Matthew certainly provided great leadership to the BMA. He also developed a significant amount of respect from the industry here.

"I'm sure Matthew will be measured and cautious, but will also take appropriate actions as necessary."