The Island saw an upswing in insurance company incorporations last month compared to recent months with a total of ten new companies setting up.

Of those companies to incorporate last month, four were class one single parent captive companies and the balance being class three insurers.

The increase in incorporations - ten last month in comparison to six in September, six in August and four in July - could be in order for company's to cash in on a key time in the insurance sector calendar - the January 1 renewal period.

Throughout the third quarter the bulk of insurance incorporations were class one and class two insurers - or captives - with minimum capital and surplus requirements of $120,000 and $250,000 respectively.

Industry insiders have said the recent trend towards captive incorporations could be in response to the escalation of insurance rates in the current hard market.

Captive companies insure their owners - in essence, self-insurance - which enables certain companies to manage their risk at lower rates than the asking price for coverage in the current market.

But during October, class three insurers - larger insurance companies with minimum capital and surplus of at least $1 million - took the bag with six companies incorporation.

There were no class four incorporations - the largest class of insurance company, with minimum capital and surplus of $100 million - during the month, and only one during the third quarter - d'Artagnan Re.