The Bermuda Monetary Authority (BMA) has said it will delay implementing Solvency II rules on group capital for an undetermined time.
This news comes after months of the authority saying it would stick to the 2014 deadline to implement the capital requirement rules set forth by the European Union, though the EU has continued to struggle to finalise the details surrounding the regime causing repeated delays.
The BMA, which has applied for third-country equivalence, said it is diverting from its original plan and will wait until further notice to implement Solvency II.
“With respect to the delay being experienced in the implementation of Solvency II in Europe, the Authority continues to consider the impact this will have on global efforts to achieve effective group supervision”, the BMA said in a letter to stakeholders this week. “We will delay the legal enforceability of the group enhanced capital requirement (ECR), until a date to be determined after a meeting at which industry views will be heard. The Authority previously communicated a deferral of the ECR and the eligible capital rules for the Long-Term companies until 1st January, 2014. In the coming weeks prior to year end, the Authority will provide further communication on the timing of the group ECR and on any other transitional arrangements to be undertaken.”
The Solvency II regime troubles stem from European governments disagreeing on how to calculate the amount of capital that should be held against life insurance policies.
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