A respected, scholarly publication has claimed that a third of the Bermuda population lives in poverty on an island that is a hidden playground for conglomerates, governments and the ultra-wealthy.

The Harvard International Review made the remarkable claim in an article for its December 27 edition entitled: “The Hidden Wealth of Nations: Unraveling the Offshore World.”

The article was authored by Isaac R. Ohrenstein, a second-year student at Harvard College who is interested in economics and international affairs.

But it cited no authority for the claim, did not define its meaning of poverty nor provided any background analysis to support the assertion.

HIR says it is distributed and read on six continents by officials, executives, lawyers, professionals and students.

The quarterly publication claims it offers insight on international affairs from the perspectives of scholars, leaders and policymakers.

Claiming unparalleled content quality with expert staff analysis of critical international issues, HIR said its articles have been quoted and featured in magazines, newspapers, books and websites around the world, and that they are required reading at universities from California to Taiwan.

The article highlighted how captive insurance was the basis for the building of an insurance hub on the island.

It said: “Bermuda’s insurance and reinsurance sectors manage $1.6 trillion in assets and write gross premiums totalling approximately $268 billion annually.

“With an estimated 670 captive insurance entities, it ranks as a prominent offshore jurisdiction alongside Vermont and the Cayman Islands.

"These three jurisdictions host around one-third of the world's estimated 6,000 captives – insurance companies established by corporations or groups to self-insure against risks.

“Bermuda has become a significant provider of catastrophe insurance for US companies and individuals.

“In the 1980s, when US companies struggled to obtain excess liability insurance, Bermuda responded by forming new companies specialising in these offerings.

“The market expanded further after Hurricane Andrew in 1992 and the September 11 terrorist attacks.

“In 2021, the United States accounted for more than 60 per cent of Bermuda’s long-term insurers’ reserves, with Hong Kong as the second-largest recipient.

“Bermuda’s appeal lies in its reputation as a “well-regulated, experienced, and capital-efficient” jurisdiction.

“The Bermuda Business Development Agency advertises the island as a compliant jurisdiction for EU and US regulations that also drives innovation in the insurance market. Its regulatory framework is supervised by the Bermuda Monetary Authority, which develops risk-based financial regulations and supervises the island’s banks, funds, insurance companies, and digital asset businesses.

“In a recent internal report, the Monetary Authority emphasised that growth in the long-term insurance market has been driven by demand for reinsurance to manage exposure, balance sheet volatility, and capital management – concerns particularly rooted in an ageing population and challenging economic conditions.

“Despite Bermuda’s success as an insurance hub, the island nation with a population of 65,000 grapples with a high cost of living and a ‘significant departure of talent.’

“An estimated one third of the population lives in poverty, further exacerbated by the lack of growth in non-financial industries.”