Changes to the Island’s insurance legislation were approved in the House of Assembly last night with the support of both parties.

The Insurance Amendment (No 2) Act 2015, tabled by Finance Minister Bob Richards, is intended to clarify and strengthen existing laws, bringing the Island toward Solvency II equivalence.

The legislation also includes a new section, which requires commercial insurers to have a head office on the Island, although he said the requirement would be handled on a “flexible and proportional” basis.

Shadow Finance Minister David Burt said the Progressive Labour Party fully support the legislation, noting that the move towards Solvency II equivalence began under the PLP administration.

He said that the new rules regarding head offices and outsourcing are important and could make a positive difference on the Island.

“In order to be a Bermuda company, you have to have your head office and significant staff here,” he said. “It’s something that has not existed here. Some people will consider it a threat. Some people will view it as an opportunity. We view it as an opportunity.”

He said that if Bermuda can achieve Solvency II equivalence, the rules could lead to more companies setting up in Bermuda.

Mr Burt questioned if this would be the final piece of legislation needed to meed the new international standards.

Mr Richards thanked Mr Burt for his support, saying the legislation would address all of the issues that have been raised regarding Solvency II equivalence, but noted that the goalposts have been moved before.

“At this point in time we are confident that it will, but if it changes we will do what it takes,” he said. “That has always been our attitude.

The EU and the European Commission are political organisations. One of the reasons we had the most recent changes is they had an election there and they had new people in the EU. As a political organisation, it is subject to change and that’s one of the reasons why the goalposts have been shifted.”