Giving examples of the type of "dysfunctional" regulation that exists in the United States, Mr. Kramer noted that he recently spoke at an educational session for the Professional Liability Underwriting Society. In order for the attendees to get continuing education credits in the state of New York, Mr. Kramer reported that he was required to certify under oath that he did not have any unpaid child support payments.

Providing another example, he noted that when outgoing N.Y. Insurance Commissioner Howard Mills was in Bermuda earlier this year defending state regulation, Mr. Mills acknowledged that New York, which hasn't adopted some NAIC model regulations, is therefore not an accredited state for NAIC examination purposes. "If [New York] can't get it together, he is the poster child for federal regulation--for getting uniform single regulation," Mr. Kramer said.

If he had started Ariel Re in New York or California, "it would take me years to be licensed," he said.

Mr. Kramer noted that he raised $1 billion in 12 weeks to get up and running in Bermuda late last year.

Bermuda has become the place "where you get ease of entry, cooperation between regulatory authorities, and intelligent regulation," he said.

The Bermuda Monetary Authority, said Mr. Kramer, has both audit and actuarial certification requirements and it maintains relationships with NAIC and the FSA in the U.K., as well as other regulators throughout the world.

"They talk to the industry. They want to find out how we do things," he added.

Mr. Kramer also noted that the members of the Bermuda insurance community "have a vested stake in the solidity" of the Bermuda insurance market.

"We can't afford to have criminals or crooks or miscreants come into our market and mess it up, when we have tens of billions of dollars of capital committed" to the industry, he said, noting that the market's solvency and reputation are at stake.