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.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.