Solvency II equivalence brings certainty for Bermuda re/insurers: Timetric

Ever since Bermuda gained Solvency II-equivalence, commercial re/insurers and insurance groups have not been deprived when competing for and underwriting business in Europe, according to a report by Timetric.

Bermuda was designated as Solvency II-equivalent by the European Commission on March 24 2016, and according to the report Bermudian commercial reinsurers face a future of certainty in the market.

According to the report, the Bermuda insurance industry has improved partly due to the role captive re/insurance businesses have played in its development.

There were approximately 7,000 captive re/insurers worldwide in 2015, whereas there were only 3,000 in the US, according to Marsh, a global leader in insurance broking and risk management.

The report claims that that there will be an increased investment from US and Canadian re/insurers in Bermuda, making it a location from which they can conduct their European reinsurance operations.

“Solvency II equivalence is expected to simplify group supervision for Bermudian insurers with operations in Europe,” said Jay Patel, analyst at Timetric.

“This is because they are able to have a more efficient group supervisory structure regulated only by the BMA, recognized by European insurers as a group supervisor.”