Bermudian Insurers Outline Post-Brexit Priorities
by Mike Godfrey, Lowtax.net, Washington
10 August, 2016
The President and Executive Director of the Association of Bermuda Insurers and Reinsurers (ABIR), Brad Kading, has outlined four priorities for both Bermuda and the United Kingdom (UK) following the UK's vote to leave the European Union (EU).
The first priority is new UK-specific regulatory and trading agreements. Bermuda has achieved "EU equivalency" that provides Bermuda reinsurers with access to the EU market and recognition of the Bermuda Monetary Authority (BMA) as a "group supervisor." Bermuda will need to replicate this relationship with the UK by ensuring the UK's Prudential Regulation Authority (PRA) recognizes the BMA as a group supervisor and Bermuda reinsurers can continue to engage in free market reinsurance trade with the UK. Kading notes that the UK has a long tradition of free trade in reinsurance.
The second priority is for the UK to win equivalence from the EU under Solvency II and other financial regulation markets. To this end, the PRA may benefit from Bermuda's practical experience in achieving equivalence from the EU.
The third priority is that the UK maintains its leading role as a member of the Association of Insurance Supervisors (IAIS). The PRA has been a significant and long-standing contributor to IAIS policy-making. Post-Brexit the UK's IAIS role will be even more important, since the UK's ability to influence global standards via the EU or the European Insurance and Occupational Pensions Authority will be lessened, he said. Bermuda will also need to continue its IAIS engagement.
The final priority is that the UK build more alliances outside the EU bloc to achieve its goals. This is particularly important where UK and EU positions diverge. he said.
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