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Member, Beacon International Group, Ltd.
SOUTHAMPTON, Bermuda—Captive insurance companies domiciled in Bermuda will not be affected by its Solvency II equivalence status, said Shelby Weldon, director of insurance licensing and authorizations for the Bermuda Monetary Authority.
Bermuda is among the first wave of countries, along with Japan and Switzerland, that is being considered for third-country equivalence status, meaning its regulations have been accepted as comparable to the upcoming European rules.
“There is no impact on Bermuda captives,” Mr. Weldon said Tuesday during a session at the 2012 Bermuda Captive Conference at the Fairmont Southampton Bermuda Resort.
“We have moved from development to implementation in 2012,” he said, noting that despite the European Union's implementation delays of Solvency II, “it has not really impacted our strategy. We will continue to push ahead with our implementation.”
While the regulatory equivalence status does not directly benefit captives domiciled in Bermuda, the regulation may provide a “higher level of comfort” as many companies form in Bermuda to enjoy direct access to reinsurance markets, Mr. Weldon said.
It is additional credit worthiness for reinsurance arrangements, he said.
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HAMILTON, Bermuda—The Bermuda Monetary Authority reported 54 new insurance companies registered in Bermuda in 2011.