More progress on Solvency II decisions needed: ABI

Faster progress on which countries are granted group equivalence under Solvency II is needed, said the Association of British Insurers (ABI).

The organisation said that progress is encouraging following the decision by the European Commission to grant Bermuda and Japan group equivalence. However, it said that decision-making needs to be stepped up.

Solvency II comes into force on 1 January 2016, meaning prompt adoption of the Delegated Acts by the European Parliament is important, according to the ABI.

“The European Commission needs to make timely equivalence decisions on further jurisdictions,” it said.

Hugh Savill, director of regulation at the ABI, said: “Given the close and mutually beneficial relationship between the London market and those in Bermuda and Japan, the publication by the European Commission of its proposals on Solvency II equivalence for these countries is really good news. 2016 is nearly upon us so we hope to see these proposals promptly adopted.

“It is now crucial we see progress with equivalence decisions for other territories. Steps such as these to strengthen international supervisory co-operation are very positive, but insurers need as many decisions in place as soon as possible to help maintain British insurers’ ability to be highly competitive internationally.”