when financial institutions first encounter the cyclical losses of the insurance and reinsurance industries, Mid Ocean Ltd. president and CEO, Michael Butt has opined.

He said the much-vaunted advent of securitisation is developing slowly, largely because of the softness in the markets.

Mr. Butt said: "The real test of securitisation will be when the losses happen. I can see, as the markets harden, the capital markets would, and the buyers might seek to test, that market more aggressively than they have currently.

"But the question for me is whether or not those types of investors will take the losses, and are they going to be there after the losses. So my question is whether or not it will be a long term market.

"And I think secondly there are elements of that market that will think that they are opportunistic and that they have the judgment as to when they can make the money, and not be there when the losses happen. We will see.

"As a senior director on our board puts it: `If you want to, as a capital market investor, play in that game, the best way is to buy Mid Ocean stock.

Because, you know, you have the specialist team, the spread and you are in the sector. There is a lot of strength to that view.'' Mid Ocean Ltd. is a founding member of the Bermuda Commodities Exchange and Mr. Butt said the company is very supportive of the embryonic exchange, believing it has a role to play.

But he conceded: "It will evolve gradually. We're glad to have it here. It will be a slow grow.'' Mr. Butt is anxious to see further interest being generated among Bermuda students in a career in insurance. He said the industry has been moving quickly to foster that interest.

"I believe there are significantly greater opportunities for Bermudians now in the global marketplace as a result of what's happening here,'' he said.

"There are great opportunities that wouldn't exist if these companies were not here.

"That has all kinds of educational implications in the long term for the Island, which we are trying to help get understood.

"Education is always a slow process. It is a generational change. Not everyone wants to work in this business. But there are a lot who do. We have some leading and very able young Bermudians coming up in our company.

"They work very hard and have a tremendous work ethic. They want to learn, are out and about in the world the whole time, and are being relatively well remunerated for it.

"It is in our interest for that to be the case, because that increases our stability on the Island.'' Michael Butt