October 04 2011
The Bermuda Monetary Authority (BMA) has published a press release to acknowledge the positive preliminary assessment of its Solvency II regulatory framework, after a review recently conducted by the European Insurance and Occupational Pensions Authority (EIOPA). Under Solvency II, the European Commission may determine whether the solvency regime of a third country is equivalent in relation to three key areas - Articles 172, 227 and 260 (as more particularly discussed in the draft report).
The commission tasked EIOPA with providing final advice on whether Bermuda's supervisory regime satisfied the general
criteria for assessing third country equivalence under Articles 172, 227 and 260. EIOPA's methodology in completing its report involved assessing the BMA's supervisory system under various principles, including providing sufficient policyholder and beneficiary protection, supervisory cooperation under conditions of professional secrecy and the proportionality principle.
EIOPA's draft report of August 2011 raised hopes that Bermuda's regime for commercial insurers (ie, Class 3A, 3B and 4 insurers) will meet regulatory equivalence with the new Solvency II rules for the large commercial (re)insurance sector, but without having to impose the same complex rules on the captive insurance sector.
A copy of the EIOPA draft report is available at http://www.applebyglobal.com/publication-pdf-versions/20110816-eiopa-equiv-11-021-bermuda-equivalence-draft-report.pdf.
ILO provides online commentaries as specialist Legal Newsletters. Written in collaboration with over 500 of the world's leading experts and covering more than 100 jurisdictions, it delivers individually requested information via email to an influential global audience of law firm partners and international corporate counsel. Please click here to register for the service.
The materials contained on this website are for general information purposes only and are subject to the disclaimer.
ILO is a premium online legal update service for major companies and law firms worldwide. In-house corporate counsel and other users of legal services, as well as law firm partners, qualify for a free subscription. Register at www.iloinfo.com.