Keywords: Solvency II, non-Europen countries, insurance, equivalence decision process,
This legal alert will be of interest to all non-European (re)insurance firms which are active in Europe either because they have a subsidiary in Europe or because they reinsure European firms' risk. It will also be of interest to European firms who cede risk to non-European reinsurers.
Solvency II comes into force on 1 January 2016 and will have extraterritorial effect in a variety of ways. This legal update explores this extraterritorial effect through the lens of the equivalence decision process by which the solvency and supervisory regimes of non-European countries may be declared "equivalent" to the regime under Solvency II. Such a declaration dramatically reduces the extraterritorial effect of Solvency II on firms or business from those countries. The European Commission released the first set of decisions about the regimes in Switzerland, Australia, Bermuda, Brazil, Canada, Mexico and the United States on 5 June 2015 and this update considers the effect of both these decisions and any others which may be made in the future.
Originally published 11 September 2015
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