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 enables access to the EEA market for third country intermediaries based on an equivalency decision by the European Commission.

By contrast, under Solvency II if the UK’s solvency regime is assessed as ‘equivalent’ for all relevant areas, then EEA insurers would be able to cede risk to UK (re)insurers as if they were EEA insurers. 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.