plan to be the leader in insurance and reinsurance innovation for the foreseeable future.

To do that though, a key business plan had to be developed, starting with a listing of the various strengths of the industry, measured against the weaknesses and potential threats.

Executives were invited to hash out the issues at "swot'' (strengths, weaknesses, opportunities and threats) sessions.

One key long-identified weakness is the Island's poor air links. Others include an inability by direct writers to freely market their products in the US. Captives, on the other hand, don't have that problem.

Reinsurers have to face some negative perceptions of Bermuda from potential customers because of its image as a zero-tax offshore domicile or a "tax haven''. Captives and direct writers are less likely to experience that as a problem. But in some cases, the insurance industry is a victim of its own success. Captives, direct writers and reinsurers all have a problem with Bermuda being so high profile.

Their firms are so closely linked with the Island that any negative news about the jurisdiction is picked up by insureds and would-be clients, whether related or not.

The biggest threat to our captive insurance market, direct insurers or reinsurers, the group consensually agreed, is the growth of competing domiciles or markets. But for the latter two, broker consolidation also poses a threat that needs to be considered. Business also faces the risk of US tax changes which could erode our zero-tax position.

The marketing committee has resolved to work on key strategies including establishing a product inventory which outlines the breadth of insurance products available on the Island. No such complete register exists.

Committee makes proposals for improving insurance industry The committee has also recommended a complete research study to identify where attention and resources should be applied in future to develop new business, especially from non-US markets.

A base line survey is proposed to identify areas of the Bermuda insurance industry's image which may require more attention and improvement, while providing a comparison base for future surveys. The committee also recommended that a survey be carried out to ensure that there are no regulatory changes that could be made which would in themselves attract new business to the Island.

The committee has also identified the need to expand the insurance industry's information office located at the Bermuda Insurance Institute.

The insurance industry is looking at new tactics to better position the Island for future business.

Changes include a higher profile at a variety of international insurance conferences, similar to the high visibility Bermuda has at the annual RIMS (Risk & Insurance Management Society, Inc.) Conference.

The industry will lend further support to the BIBA briefing tours. And, having spent some $70,000 annually on advertising, the IAC marketing committee has discussed a joint initiative with BIBA, which would require a significant committee contribution.

The industry also wants to commit further resources to send a touring educational "road-show'' to various RIMS chapters across the US. The first one begins near the end of this year.

Other tactical changes include an upgrade of the printed material from the local industry and an upgrade of the industry's web-site together with French, German and Spanish translations.

The IAC marketing committee believes that increasing job opportunities for Bermudians can be achieved not just in the insurance industry, but also in the companies that support the insurance market, such as suppliers, professional services and hospitality markets.

They see not only an increase in the number of jobs, but also in the quality of new jobs as a priority.

Government expects to take in $7.5 million through licensing fees from registered insurers this year. From 1990 to 1997, Bermuda's total registration of insurers increased by 175 to 1,487. Continue to grow the registrants, and you continue to grow licensing fees.

Annually, companies are added to the list (averaging 76 since 1990), but other companies are annually removed (averaging 55).

More effort is being made by the committee to attract quality business conferences, especially outside the "tourism season''. Those efforts have already proved successful.

More conferences benefit the hospitality industry and demonstrate the "maturity'' of the Bermuda marketplace.

Eleven business conferences are scheduled for Bermuda this year, eight of which are being held here for the first time.

What is proposed Study on where to target resources for whipping up new business; Survey on the industry's image; Examination of potential regulatory changes; Expansion of industry's information office; Higher profile at international conferences; Further support to BIBA briefing tours; and Upgrade of printed material and industry's web-site; Inventory on insurance products.