On 24 September, following a period of scrutiny by the European Parliament and Council, the Commission Delegated Decision ((EU)/2015/1062) was published confirming equivalence of the solvency and prudential regime for (re)insurers in Switzerland from 1 January 2016.
On 4 September, EIOPA published its Progress Report (the “Report”) on the equivalence assessment of the Bermudian supervisory system in relation to articles 172, 227 and 260 of the Solvency II Directive. The assessment of equivalence refers to Bermuda based commercial insurers only (not SPVs or captives). Note that the Bermudian prudential regime is currently being revised, with amendments due to commence on 1 January 2016.
In the Report, EIOPA advises the EU Commission that Bermuda meets the criteria set out in EIOPA’s methodology for equivalence assessments under articles 172, 227 and 260 with certain exceptions in areas or for classes of insurers for which Bermuda is not yet fully equivalent. Some examples of the caveats set out by EIOPA include: (a) under Article 172, the Bermudian Monetary Authority (“BMA”) needs to strengthen its requirements in the areas of outsourcing and public disclosure in order to be equivalent under Solvency II; (b) in respect of Article 227, the BMA’s supervision of certain life insurers is only partly equivalent – insurers are not currently required to provide GAAP financial statements; and (c) in relation to Article 260, the BMA is largely equivalent in respect of requirements regarding changes in business, management and qualifying holdings. The upcoming legislative changes are likely to address any gaps in the requirements in respect of disposals of qualifying holdings.
A link to the Report is here.