Testifying before the Subcommittee on Financial Management, the Budget and International Security's oversight hearing on insurance industry practice, Mr Spitzer drew attention to the outflow of US insurers and captives to offshore centres such as Bermuda, and pledged to investigate the reasons behind the exodus, suggesting that:

"There is a Pandora's box that should be opened so that we can understand what is going on in these offshore venues. It will not be a pretty picture."

However, Mrs Lister suggested to the Royal Gazette that:

"Bermuda has been the flavour of the day and at the end of the day we have been successful as a jurisdiction getting a very vibrant successful insurance industry here."

She continued:

“Bermuda’s name was used but I do not see that the issues relate specifically, that whatever he was discussing are just Bermuda issues. We operate in a global marketplace so if there are any issues that ultimately come out of this they are issues that will affect reinsurers more generally not just the Bermuda ones.”

The BMA chief went on to add that in many cases, insurers operating in Bermuda have US operations, and that Mr Spitzer's probe may end up focusing on them.

“If specific institutions have been named we have been in contact with them and we are working very closely to determine exactly what has happened – whether or not in fact any Bermuda entities have done anything which we need to take regulatory action about,” she told the news service.