Solvency II Equivalence In The International (Re)insurance Landscape: Part IV: Asia Pacific Solvency II Equivalence
Solvency II’s reach and influence extends to Asia Pacific, as Japan and Australia attained provisional third country equivalence status for Group Solvency (Article 227). This status is valid for ten years and reduces the administrative burden for the Solvency II calculation of subsidiaries in the European Economic Area (EEA).
Japan further attained temporary equivalence for Article 172 until 2020, which allows for reinsurance contracts between EEA (re)insurers and Japan-based companies to be treated in the same way as reinsurance contracts enacted between EEA firms. Although Japan has been recognized as Solvency II third country equivalent, the JFSA continues to review and refine the framework.
The regulatory issues facing (re)insurers with international operations require highly specialized expertise. Guy Carpenter’s Strategic Advisory® has a team of professionals who can help companies navigate the Solvency II realm and the risk-driven approach to management.