Progress being made on deciding which countries are granted group equivalence under Solvency II is encouraging but needs to be stepped up, according to the Association of British Insurers (ABI).
The European Commission has proposed that Bermuda and Japan become the second set of countries to be granted group equivalence, which will enable European insurers who do business outside the EU to do so more easily.
Solvency II comes into force on 1 January 2016, meaning prompt adoption of the Delegated Acts by the European Parliament is important, according to the ABI.
“The European Commission needs to make timely equivalence decisions on further jurisdictions,” it said.
Hugh Savill, director of regulation at the ABI, commented: “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 these countries is really good news. 2016 is nearly upon us so we hope to see these proposals promptly adopted.
“It is now crucial we see progress with equivalence decisions for other territories. Steps such as these to strengthen international supervisory co-operation are very positive, but insurers need as many decisions in place as soon as possible to help maintain British insurers’ ability to be highly competitive internationally.”
Association of British Insurers, Solvency II, European Commission, Europe, Bermuda