On 31 August 2010, the Committee of European Insurance and Pensions Supervisors (CEIOPS) published its final advice to the EC on third country equivalence. This advice follows on from a consultation process that took place during July and August. The majority of third countries selected by CEIOPS for the review expressed their approval at participating in the equivalence assessments.
Solvency II envisages that equivalence assessment should be made in relation to reinsurance supervision, group solvency calculation and third country group supervision. Factors to determine which countries should be included for equivalence are whether a third country had a risk based supervisory regime, the number of (re)insurance undertakings situated in the third country and the existence of any mutual recognition arrangements in place. Switzerland and Bermuda are to be included in the first assessment. CEIOPS has also expressed its willingness to undertake an assessment of the USA in relation to reinsurance supervision and group solvency calculation.