public consultation on the Solvency II equivalence of Bermuda, Japan and Switzerland is the last chance for market participants to comment on EIOPA’s advice on the ‘first wave’ of third country assessment. All three countries were found to meet the equivalence criteria “with certain caveats”. In some cases these caveats state – “not equivalent”.
Seeking Solvency II equivalenceThe equivalence assessment aims to ensure countries and their supervisory regimes “provide a similar level of policyholder/beneficiary protection as the one provided under the Solvency II Directive.” Equivalence may be sought in three areas as defined by specific articles in the Framework Directive:
- Reinsurnance (Article 172) for obtaining reinsurnace outside EEA;
- Group Solvency Calculation (Article 227) for an EEA parent company with a subsidiary in a third country; and
- Group Supervision (Article 260) for a parent company in a third country with a subsidiary in the EEA.