The Best report also addressedBermuda's competitive tax environment for businesses, and the stigma that carries. In the U.S., Best pointed to the so-called "Neal bill," proposed by Rep. Richard Neal, D-Mass., which would increase taxes on foreign insurers by disallowing tax deductions for reinsurance between affiliated entities.

Brad Kading, president and executive director of the Association of Bermuda Insurers and Reinsurers (ABIR), said recently that the Republican takeover of the House could take some wind out of the sails of proponents of the Neal bill.

Additional pressure on Bermuda has also been seen recently as several companies have redomiciled from Bermuda to destinations such as Ireland and Switzerland, Best noted. These countries offer competitive tax environments, but also more abundant office space, a perceived level of additional security due to tax treaties with the United States, and a more open labor market, among other advantages, according to the report.

Still, Best said it expects the Bermuda market to stay relevant, even if the Neal Bill passes. The Bermuda market will continue to be innovative and, depending on the severity of the Neal Bill, may even attract more companies, according to Best.