Gaining Solvency II equivalence, which is now in sight for Bermuda, is critical to the jurisdiction according to David Thompson risk consultant at KPMG in Bermuda.
Thompson told Bermuda:Re and ILS that as well as being important from a regulatory perspective, Solvency II equivalence is also important for the region to continue to innovate.
“The extent of tax reform measures being proposed and debated by, among others, the US and the UK (historically Bermuda’s major trading partners) continues to be a discussion topic across the Island. In the face of this, it is vital that Bermuda does everything it can to remain competitive, especially in what remains its life-blood industry,” says Thompson.
He adds: “This is truer today than it has ever been, especially with the potentially unprecedented period of change that the reinsurance sector is starting to experience.
“Regulation may be only one aspect of this need for competitiveness, but there is no doubt that companies and investors continue to value a regulator that understands the business models being placed in front of it and can offer a streamlined, although still robust, licensing process.”
Thompson also claims that innovation has always been and remains Bermuda’s lifeline to new business and markets. He says this ability to innovate is now protected, rather than being hindered, thanks to Solvency II equivalence, as it will give confidence to investors and companies operating in the market or those thinking about which jurisdictions to use.
Solvency II is scheduled to come into effect on 1 January 2016.
The full interview with KPMG's David Thompson can be read here.
Solvency II, David Thompson, KPMG, Bermuda