Economic recovery will be a long, slow process

WEDNESDAY, APR. 18: Economic recovery will not happen overnight, a top banker warned yesterday.

But Rick Manuel, vice president, corporate banking at the Bank of Butterfield, said a boost in numbers at this year’s Risk and Insurance Management Society (RIMS) conference in Philadelphia was encouraging.

Mr Manuel said: “It’s early — I think it’s going to be a long, slow process. We are still a way from getting back to where we were six years ago.”

But he added that numbers at the conference were up compared to last year — a signal that there is light at the end of the tunnel as the US and Europe begin to haul themselves out of recession.

Mr Manuel added that the banking sector’s aim for RIMS was to support Bermuda and drum up new business as well as meet existing clients.

He said: “New business is a sector we are very interested in helping to serve. We have had some good leads — it’s tough to know if anything will pay off, though.

“People are looking at forming captive insurance companies and they are looking at Bermuda. It’s unclear whether that will transfer into setting up in Bermuda, but we will follow all the leads and see where they go.

“We think we have a good offering which appeals to people.

“There’s a huge tie-in for everybody involved in the industry.

“Insurance companies, lawyers and banks all work together to promote Bermuda.”

Premier and Finance Minister Paula Cox on Monday attended the conference and toured the convention hall, as well as hosting a reception aimed at attracting business to Bermuda.

Ms Cox said: “Bermuda is universally acknowledged as a premier financial services jurisdiction. We have an established reputation for economic, political and social stability and are committed to prudent long-term financial planning, but we cannot take rest on our laurels and take our success for granted.

“So attendance and a strong presence at RIMS affirms our commitment and our unwavering support to a key sector of our economy.”

In addition to Ms Cox and a team from the Ministry of Finance, representatives from the two main banks, the Bermuda Monetary Authority, Business Bermuda and big guns from international companies on the island were also at the conference.

David Fox, spokesman for Bermuda Insurance Development Council, added: “RIMS is a guarantee that the Bermuda industry will have productive discussions with clients and prospective clients.

“These are people who direct the risk management efforts for major corporations, public utilities, governments and entire cities.

“People love to be able to meet the Premier of Bermuda and that they have a connection to politicians, Government in general and Bermuda’s regulators. It makes them feel a lot more comfortable, because these are huge investments.”

The two were speaking on the second day of the annual RIMS conference.

More than 10,000 professionals from 50 countries are expected to attend the five-day conference, which started on Monday.

Mr Manuel added that attendance at RIMS was up this year compared to last year —when economies in the west were struggling to cope with the worldwide recession.

He said: “We have one day down and traffic has been reasonable. We got a huge downturn in attendance last year, but it’s better this year.

“You always want to see a lot of traffic through the Bermuda booth and we have seen that.”