COVID-19? Business is Flourishing in Bermuda

Even during COVID-19, business is flourishing in Bermuda. The Island has become a centre for innovation—and one of the world’s safest places to work.

COVID-19 has closed businesses, crushed industries, and pushed much of the world into an economic recession. But Bermuda continues to welcome companies, investors, and individuals to its shores. “We’ve instituted an aggressive testing approach to tackling COVID to ensure our borders and island remain open for business,” says David Burt, Bermuda’s premier, who assumed office in 2017.

Bermuda’s unique partnership between regulators, government, and business—which Burt calls “the Bermuda holy trinity”—along with its excellent infrastructure and appealing geographic location (it’s less than a two-hour flight from New York City) have enabled the 20.6-square-mile territory to punch way above its weight as a contributor to the global economy. Recent figures put two-way trade with the U.S alone at $34 billion. For CEOs and investors who are looking to respond quickly to evolving needs while consistently delivering value, Bermuda makes for an agile partner. “It’s easy to do business here,” says Burt. “Our size alone helps make us nimble, and all of our major industries and government are located within one square mile. You can get clarity about how to expand your business by just walking down the street.”

The Bermuda Business Development Agency (BDA) also eases the way, offering a robust slate of programs that encourage direct investment and assist companies in starting up, relocating, or expanding their operations on the island. The agency continues to help clients worldwide during the pandemic, conducting webinars, for example, that provide market updates and guidance for businesses navigating these challenging times. In addition, meetings on-island have been facilitated to meet the needs of businesses, all while adhering to safety protocols, and new policies and legislation have been supported.

“Capital, capacity, and talent continues to be our brand and reputation that we work hard every day to protect,” says Susan Pateras, chief operating officer of Liberty Special Markets in Bermuda, who became a BDA board member in early 2020. “But our defensive play is just as important as our offensive play—growth in the post-pandemic world will be critical to our future. Innovation is part of Bermuda’s DNA.”

A self-governing British overseas territory, Bermuda has a long-established history as a global risk-management centre, with a best-in-class regulatory system and a reputation for exacting standards of compliance and transparency. Much of this is thanks to Bermuda’s legal system, which is based on the common law system of England and Wales, with modern and relevant legislation enacted. Given the territory’s reputation for risk management, it’s no surprise that when COVID-19 spread worldwide in March, stringent measures were immediately put in place to contain the virus, including extensive testing and tracing. These efforts were so successful that on Aug. 1, after being designated a “Safe Travels” destination by the World Travel & Tourism Council, Bermuda launched a program allowing nonresidents (if they meet the criteria) to apply for a “Work from Bermuda” certificate that allows them to reside and work remotely in Bermuda for a full year.

“We offer [the world] a safe harbour [where] people and companies can collaborate in safe, common spaces,” says Burt.

Bermuda’s strict adherence to health protocols has allowed for a secure business environment that spans numerous industries—including reinsurance, asset management, trusts and other high-net-worth services, shipping and aviation registries, law enforcement, border security, and space and marine research—for companies from across the globe. But there is also a strong focus on innovation. Over the past several years, international businesses pursuing cutting-edge technologies have been drawn to the island, and Bermuda has emerged as a key centre for digital assets, fintech and blockchain innovation. And it’s gaining recognition: Last year, Hester Peirce, a commissioner for the U.S. Securities and Exchange Commission who has made digital assets a main focus in her push for regulatory innovation, lauded Bermuda as “one of the only jurisdictions to address the [digital asset] custody question in detail.” (Digital asset custody solutions are independent storage systems designed to safeguard large quantities of digital assets while providing both security and liquidity.)

Two pieces of landmark legislation related to digital asset–based ventures that passed in 2018 and have been subsequently refined have also contributed to Bermuda’s attractiveness to international businesses. Together, they provide regulatory certainty and a reliable legal framework for companies in the fintech sector. And the island’s “regulatory sandbox” and “innovation hub” tracks—which provide spaces for companies to test new technologies and products or services in simulated and controlled environments for a defined period of time—continue to help spur growth in the insurtech and fintech sectors.

Thanks to its combination of proven stability and a solid framework for cutting-edge innovation and growth, Bermuda has cemented its reputation as a global business hub. Now, as larger countries continue to struggle to contain COVID-19, Bermuda has positioned itself as a place that is also uniquely open for business. And it will continue welcoming elite members of the global business community for years to come. “We’re a country that focuses not on quantity but on quality,” says Burt.

“Not every business can get into Bermuda. But if you can, it is known without question that you are a quality company.”

Source: FORTUNE Magazine (October 2020)