The Association of Bermuda Insurers and Reinsurers (ABIR) has welcomed Bermuda’s Solvency II equivalence formally taking effect following the completion of a formal 20-day notice period. The regulation is retroactive to January 1.
Bermuda and Switzerland are now the only two jurisdictions which have been found fully equivalent by the EU.
“Bermuda’s robust regulation regime for commercial insurers has now been found ‘equivalent’ by the world’s largest market – the EU has given Bermuda its stamp of approval,” said Bradley Kading, president and executive director of the ABIR.
“This will benefit ABIR members in Bermuda – the red tape has been effectively removed. For example, the Bermuda Monetary Authority (BMA) is now recognized as a global group supervisor for targeted insurance groups and reinsurance can be conducted on a cross-border basis without market barriers. For Bermuda insurers this means an efficient rather than redundant layer of group supervision; and for reinsurers it means cross-border trade without individual jurisdictional restrictions.”
The final multiple stage approval was completed with publication in an EU journal on March 4 that began a formal 20-day notice period. On March 25, the BMA’s equivalency under the three measures of Solvency II (group capital, group supervision and reinsurance regulation) became effective retroactive to January 1.
Kading added: “Congratulations to BMA CEO Jeremy Cox and Managing Director of Supervision Craig Swan for their leadership in completing the Solvency 2 equivalence project.
“The US National Association of Insurance Commissioners (NAIC) has also designated Bermuda and the BMA a ‘qualified jurisdiction’ which also allows robust cross-border reinsurance trade with the US – the world’s second largest trading block.
“This bilateral recognition by the world’s two largest trading blocks ensures Bermuda’s status as one of the three leading reinsurance domiciles in the world and it positions Bermuda well for continued recognition by the International Association of Insurance Supervisors (IAIS) which is currently substantially rewriting its own multilateral international regulatory standards.”
ABIR, Solvency II, Bermuda, Switzerland, North America, Bradley Kading, BMA, Jeremy Cox, Craig Swan, NAIC