Bermuda stresses Solvency II equivalence will serve it well during Brexit

Bermuda’s Association of Bermuda Insurers and Reinsurers (ABIR) has moved to stress that the island will continue to benefit from Solvency II equivalence despite the UK’s exit from the EU but noted that some of its members will review their corporate structures in light of the move.

“Bermuda’s Solvency II equivalence finding by the European Union will serve us well as the UK negotiates its multi-year transition out of the EU. The Bermuda equivalency is unaffected by the UK vote,” said Bradley Kading, president and executive director of ABIR.

“ABIR has excellent relationships with both UK and EU policymakers and regulators. ABIR members provide vital insurance capacity that makes UK and EU insurance markets more competitive.

“ABIR members will be reviewing corporate structures to determine what changes in their regulatory footprints may be necessary in order to conform with expected changes in European regulatory governance,” he said.

He added that the body will also encourage the Bermuda government and the Bermuda Monetary Authority (BMA) to continue their investment in bilateral relationships that lead to important legal agreements on tax cooperation and transparency; and recognition of robust BMA regulation that is in compliance with international standards.

“These essential actions are necessary to ensure we retain level playing field access to the world’s markets,” Kading said.