Watch: Eiopa chair discusses review of Solvency II
The Risk Forum hosted by the Association of Bermuda Insurers and Reinsurers heard an understanding of the three-year review of Solvency II, the European prudential regulation system, to which the Bermuda’s insurance regulatory system is linked.
It is run by the European Insurance and Occupational Pensions Authority (Eiopa), the independent European Union supervisory authority for the regulation of the insurance and occupational pensions sectors within the EU.
Eiopa chairwoman Petra Hielkema addressed the comprehensive three-year review of the Solvency II framework (2025—2027), focusing on technical standards, proportionality and simplification.
In 2016, Bermuda achieved full equivalence with Solvency II, a European Union directive. With the blessings of the European Commission and through the Bermuda Monetary Authority, Bermuda's regulatory regime for commercial insurers is recognised as achieving the same outcomes as Solvency II, allowing Bermuda-based firms to operate in the EU without being considered high-risk.
Key focus areas include updating guidelines on the supervisory review process, strengthening liquidity management, revising capital calculations, and integrating sustainability risks.
Part of the review process under way is addressing regulatory technical standards and guidelines. Eiopa is launching multiple consultations on revised standards and reducing existing guidelines by at least 25 per cent to lower the burden on insurers.
Ms Hielkema was speaking during a forum session on compliance and regulatory co-operation, an example of which is the ten-year old Solvency II regime and Bermuda’s equivalence status.
Craig Swan, the CEO of the Bermuda Monetary Authority talked of the co-operation with his European counterparts, but also with counterparts in the United States, through a team of state commissioners at the National Association of Insurance Commissioners.
The panel was moderated by Shannon Bender, the executive vice president and group general counsel and corporate secretary at RenaissanceRe.
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