The EU (European Union) Reinsurance Directive and the recommendations of the G30 Group will have no direct impact on Bermuda according to Bermuda Monetary Authority Supervisor of Insurance Jeremy Cox.

Mr. Cox discussed recent developments in insurance and reinsurance regulation at the Intermediaries and Reinsurance Underwriters Association Conference (IRU) conference at the Wyndham Resort in Southampton earlier this week.

In his presentation entitled The Bermuda Market ? The Outlook Post 9/11, Mr. Cox said the EU Reinsurance Directive and the recently published recommendations of the G30 Group seek to create a harmonised framework for reinsurance supervision.

Mr. Cox also said the EU Solvency II framework, a proposed risk-based solvency regime for insurance is also high on the agenda and set to be introduced in mid 2007.

Speaking to T yesterday Mr. Cox said: ?If a EU member state, such as Ireland, decides to implement a directive you must understand the directive to have a feel for its impact.?

He said the BMA keeps abreast of developments in the EU and organisations such as the International Association of Insurance Supervisors (IAIS) which Bermuda as member continues to be an active participant.

?There may be an indirect impact of the EU Solvency II framework as there has been a discussion on capital adequacy from a reinsurance perspective,? Mr. Cox said. ?The IAIS began giving attention to the regulation of captives last year with the possibility they should be regulated in the same way as commercial insurers.?

Mr. Cox said the BMA has been part of a working group developing a background paper for the IAIS related to this issue in order to educate them about the nature of captives which the Authority is aiming to complete this year.