A secure electronic network for Bermuda-based businesses was officially launched yesterday.

The network, which has been operating on a trial basis among 21 member organisations with 2,500 users, is run as a non-profit association. Now the group is attempting to expand the network.

Joe O'Neill, president of the Bermuda Connect Association, estimates the network will grow to about 8,000 members in 60 organisations. Currently users are communicating and sending documents via E-mail. The network has expanded to electronic commerce, mainly submissions from underwriters to brokers.

Yesterday, Association members made presentations about the network at an information session held at the Bermuda Insurance Institute.

"It is Bermuda's only secure managed network of trading partners,'' Mr.

O'Neill said.

Expansion and development of the network is crucial to Bermuda, Graham Pearson of Paragon Bermuda Ltd. said. Paragon manages the network, which operates though a secure network hosted by Quantum Communications.

"It is not leading edge,'' he said. "We are probably a year behind our competition.'' For example members will soon be able to search Registrar of Companies database for company registration documents. The Bermuda Monetary Authority is also scheduled to make an announcement next month about statutory reporting requirements by companies. TeleBermuda International, which trades under the name of GlobeNet Communications, is looking at providing members billing information and fault reporting services on the network.

Insurance companies are looking at developing on-line submissions and quotations, while law firms want to streamline the incorporation process on the network.

Bermuda Connect's trading partners current include ACE Ltd., AON/A&A, Appleby Spurling & Kempe, the Bermuda Insurance Institute, the Bermuda Monetary Authority, the Registrar of Companies, Cable & Wireless, TeleBermuda International Ltd, Centre Solutions, Cooper & Lybrand, Hemisphere Management, International Risk Management, Ernst & Young, Marsh & McLennan/Johnson & Higgins, The Bank of Bermuda, Mutual Risk Management, Stockton Re, EXEL Ltd., and Zurich Global.