Market access

Would a positive ‘equivalence’ decision by the European Commission in respect of the UK improve market access in the future?

Unlike other directives, the IDD does not contain any provisions which enable third country intermediaries to be treated on the same basis as EEA intermediaries.  Therefore a positive ‘equivalence’ decision would directly impact a UK intermediary’s access to European markets.

By contrast, under Solvency II where the UK’s solvency regime is assessed as ‘equivalent’ for all relevant areas, then EEA insurers would be able to cede risk to UK insurers as if they were EEA insurers, the EEA supervisors could rely on the UK regulator to apply group supervision at a worldwide parent level, or a UK insurance subsidiary could be included in the group solvency calculation on the basis of solvency calculated using local (rather than European) rules.