12 June 2015Bermuda analysis

EC unveils Solvency II-equivalent countries

The European Commission has adopted its first third country equivalence decisions under the Solvency II regulatory regime.

This means that the insurance regimes of Bermuda (excluding captives), Australia, Brazil, Canada, Mexico and the US are one step closer to full equivalence with the European Directive.

Switzerland has been granted full equivalence in all three areas of Solvency II: solvency calculation, group supervision and reinsurance.

After receiving equivalence, EU insurers can use local rules to report on their operations in third countries, while third country insurers are able to operate in the EU without complying with all EU rules.

Jonathan Hill, EU Commissioner for Financial Stability, Financial Services and Capital Markets Union, said: "The decisions taken today will lead to more choice and competition for European consumers and also enable European insurers to compete more effectively in overseas markets. So this should be good for European businesses and the European economy."

The decision will now be reviewed by the European Parliament and the Council.