BDA chief rallies industry to Bermuda’s defence
The chief of the Bermuda Business Development Agency (BDA) has slammed big nations of for taking “cheap shots” at the jurisdiction.
Addressing the Bermuda Insurance Market Conference (BIMC) last month, BDA chief executive officer Ross Webber said Bermuda was the “whipping boy” for politicians “whose priorities are puppeteered by non-governmental organisations (NGOs) and interest groups”.
Webber went on to say that the sniping from the sidelines from countries that were far bigger and more influential was “far more insidious and damaging than any hurricane”.
“Larger nations, world powers, are resorting to taking cheap shots at Bermuda because we happen to be an offshore international financial centre, a very successful one,” he added.
“In spite of our achievement—or perhaps because of it—we are condemned for our success.”
He also took a swipe at the US and its Treasury Department in particular which has recently been vocal over its concerns at how hedge fund managers might be utilising tax concessions for reinsurers.
“You are not just files in a drawer or nameplates on a door. You have offices and valued employees. You do real business from Bermuda—substantive economic activity that generates innovation and skilled jobs, and has quantifiable global impact,” said Webber.
“You contribute locally. You pay payroll taxes and health insurance and pensions. You heavily support our Island’s community and charities. There’s nothing ‘shady’ about that.
“And yet they paint us as tax dodgers, secretive entities, complicit members in an uncooperative system to rip off the world. You know, and I know—that is simply not true. As I look around this room today, I see executives of global companies who are engaged in the reputable business of insuring against the worst disasters nature and bad luck can wield.”
He went on to cite that facts that Bermuda paid $22 billion to rebuild the US Gulf and Florida coasts after horrific hurricane seasons in 2004 and 2005. That included paying nearly 30 percent of insured losses from hurricanes Katrina, Rita and Wilma.
“We paid 9 percent of US 9/11 claims. We support some 25 percent of the US medical liability insurance and reinsurance market. And we contribute more than a quarter of capacity for Lloyd’s of London,” said Webber.
“Bermuda is a significant economic partner for the world, particularly the US, UK, Canada and Europe. These are incredible selling points for Bermuda to the world at large. So what’s the problem? The problem is that many governments, media and NGOs find it just too convenient to lump all offshore centres, particularly British Overseas Territories, together when talking about secrecy, evasion and corruption.
“They use a broad brush to stereotype us all with the same sweeping indictments and accusations. Bermuda’s record on the strength of our regulator, beneficial ownership, transparency and tax information exchange is well-known—but is too often ignored.
“Increasingly, though, as a jurisdiction, it is global human elements—not natural ones—that put us most at risk. More and more, we are having to contend with being made the whipping boy of something. It comes from all angles and it’s a far greater menace to tackle: I’m talking about being the bullseye for politicians whose priorities are puppeteered by NGOs and ‘interest groups’.”
Rallying his audience to the cause he said: “You are Bermuda’s goodwill ambassadors. You represent real, live, substantive companies with an actual physical presence here. You are in the best position to be our partners in this mission to counter ‘tax haven’ claims and other inaccuracies. As a jurisdiction, we’re in this together—and we can’t afford not to be.”
