The EU Commission has granted Bermuda full third country equivalence under Solvency II in its delegated decision of 26 November 2015. Where a third country (ie, a non-EU member state) is granted full equivalence under Solvency II, EU insurers may implement local rules to report on their operations in that third country, while third country insurers may avail of certain exemptions from EU rules.
Japan has been granted temporary equivalence under Article 172(4) of the directive, which relates to reinsurance, and provisional equivalence under Article 227(5), which relates to group solvency. The determination of temporary equivalence in relation to reinsurance is valid for five years while the determination of provisional equivalence in relation to group solvency is valid for 10 years.
The Commission’s approval will now pass to the European Parliament and the Council for scrutiny and approval. The equivalence may be applied retroactively to the date of implementation of Solvency II, 1 January 2016.
Please click here to view a copy of the delegated decision.