Bermuda will be among the first wave of countries to be assessed for equivalence with the new Solvency II regulations for insurance companies, the European Commission confirmed on Friday.

Switzerland and Japan will be the two other countries to undergo the reviews, which will evaluate insurance regulation and ensure that its capital requirements and standards of corporate governance are in line with Europe new and stricter regulations.

The Bermuda Monetary Authority has been introducing big changes to enhance the Island's regulation so it qualifies for equivalence which would ensure that Bermuda-based companies doing business in the EU would not be disadvantaged.

In a letter to the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) on Friday, the commission said assessments should cover equivalency of the countries' legislation and supervisory practices to those called for in Solvency II, the risk-based capital framework that comes into force on January 1, 2013.

The commission further recommended that a transitional regime to determine equivalency should be developed, although such a regime is not part of Solvency II as currently proposed. Countries considered under a transitional regime would be given time to satisfy equivalence criteria while committing to implementing a solvency regime compatible with Solvency II, the letter stated.

CEIOPS said in July that Bermuda and Switzerland were being considered for first-wave assessment.