According to draft papers published by the European Insurance and Occupational Pensions Authority (EIOPA) on 17 August 2011 (click here for copies), the Bermudan, Swiss and Japanese insurance regulatory systems are on course to meet the Solvency II equivalence test, although certain improvements remain to be made in each case.

Under the Solvency II regime, the European Commission may determine whether the solvency regime of a third country is equivalent to that laid down in Solvency II in relation to certain specified areas, with the aim of determining whether the third country supervisory system provides a similar level of policyholder and beneficiary protection.

A consultation published by EIPOA on its findings will close on 23 September 2011.