The local insurance industry is this week learning more about ways to put Bermuda at the centre of a new electronic insurance market, using the Internet to bridge the gap between local underwriters and overseas brokers.

Managing director of WIRE Bermuda Ltd., Rowan Douglas, demonstrated during a Bermuda Insurance Institute (BII) luncheon yesterday at the Princess Hotel, how the Island could bridge the cultural distance to London.

Mr. Rowan has spent the week discussing with Bermuda's catastrophe reinsurers some of the services that they can offer across the Internet to produce a market in other jurisdictions.

A key element will be an ability for potential insureds to use the Internet to look directly into the Bermuda market, to study available capacity and determine exactly who they need to talk to.

Mr. Douglas said, "Underwriters here have been asking all kinds of questions about the types of services they may be able to provide, people they can communicate with and through what methods.

"There are all kinds of issues which have to be faced including the maintenance and updating of the service. There is the communication with the US question, on whether the Internet represents direct communications and how one would handle the tax issue.

"The general feeling is that it won't be a problem. But it is something that we will have to have a look at.'' Efforts are underway to determine the total extent of the interest, and feasibility, with view to a public launch by next February's Bermuda Insurance Symposium.

Mr. Douglas said, "The feeling is that this will happen. Bermuda has some intrinsic advantages in making it happen, namely a small group of innovative underwriters who can work together quickly, which helps communication.

"There is also an ability here to more quickly lay the framework for supporting legislation that may be required to help electronic commerce or electronic communication.'' Mr. Douglas said that it is now up to the Bermuda market to decide if it is going ahead. He is also presenting the scheme to underwriters in London on Wednesday at the Lloyd's Symposium. Five leading reinsurance syndicates at Lloyd's have been already approached with the concept.

The WIRE managing director said, "Partly because of the tribulations that London has gone through, they are open to reconstruction and new ideas. We found a lot of support from London underwriters.

"It is also convenient for this to work in London, because, much like Bermuda, almost everyone is in one area.

"Bermuda, though, could have a unique status. The hub could well be here in Bermuda and I think the two markets, Bermuda and London, would complement, rather than compete with each other.''