expects to release its findings in the New Year.

The Filing and Stats Committee, which is a sub-committee of the Insurance Advisory Committee, has been carrying out an overall review of insurance regulations since July.

Committee chairman Mr. Robert Steinhoff said: "We do this every five years or so. This is a comprehensive review of the regulatory procedures to see if it's working or whether it needs fine tuning.'' "At this point in time we are still in committee and have not reported to the IAC.'' Details of the committee's findings would probably be released in the New Year, said Mr. Steinhoff.

It is believed one of the areas the sub-committee has been looking into is whether to tighten up reporting procedures for non-captives.

One of the biggest concerns facing Bermuda's international insurance sector today is how to legislate to separate pure captives, which insure only their parent company, from commercial insurers which cover third-party risks.

One captive insurance manager, who did not want to be named, said: "The companies that are going to damage Bermuda's reputation are those doing commercial business because, if something goes wrong, it's not just the parent that gets harmed but innocent third parties as well.

"The Island cannot afford to have its reputation tarnished in the eyes of the outside world.'' In the 1980s, some Bermuda-based captives ran into financial trouble when they branched out from their core business and began writing third-party risks.

Mr. Robert Steinhoff.