November 2015
The European Commission has awarded Bermuda and Japan full Solvency II equivalence, ensuring that the continent’s insurers will be able to trade easily in these jurisdictions when the new regulatory framework comes into force next year.
Insurance associations have praised today’s (26 November) decision to award Bermuda and the Bermuda Monetary Authority (BMA) equivalence, with Solvency II set to go live from 1 January.
David Matcham, CEO of the International Underwriting Association, said that the Bermudian market was an important source of diversification in reinsurance capacity for the international insurance market and European insurers.
“Bermudian equivalence will ensure market access and be helpful for EU consumers,” he continued.
“We’d encourage the Commission and Council to expedite their comments, if any, on the delegated act so equivalence can move ahead,” Matcham added.
Bradley Kading, president and executive director of the Association of Bermuda Insurers and Reinsurers, provided figures that showed how important the island was to Europe-based insurers.
“Bermuda companies provided 20 percent of the recent UK Pool Re terrorism reinsurance placement and historically have supplied 20 percent of the European property catastrophe reinsurance market,” he said.
“In addition, Bermuda insurers have covered between 20 percent and 50 percent of recent European-based airline and ocean marine catastrophic losses.”
Hugh Savill, director of regulation at the Association of British Insurers, also welcomed the decision.
“Given the close and mutually beneficial relationship between the London market and those in Bermuda and Japan, the publication by the European Commission of its proposals on Solvency II equivalence for Bermuda is really good news.”
However he added that it was imperative to see progress with equivalence decisions for other territories.
