The European Commission has adopted its initial third country equivalence decisions under Solvency II.
These equivalence decisions take the form of delegated acts and they concern Switzerland, Australia, Bermuda, Brazil, Canada, Mexico and the US.
They will provide more legal certainty for EU insurers operating in a third country as well as for third country insurance companies operating in the EU.
After receiving equivalence, EU insurers can use local rules to report on their operations in third countries, while third country insurers are able to operate in the EU without complying with all EU rules.
Jonathan Hill, EU commissioner for the financial stability, financial services and capital markets union, said: ''The decisions [taken] will lead to more choice and competition for European consumers and also enable European insurers to compete more effectively in overseas markets. So this should be good for European businesses and the European economy.''
Switzerland has been granted full equivalence in all three areas of Solvency II: solvency calculation, group supervision and reinsurance.
This decision, which is based on a report by the European Insurance and Occupational Pensions Authority, found the Swiss insurance regulatory regime to be fully equivalent to Solvency II, and equivalence has been granted for an indefinite period.
The other equivalence decision, that concerns the other six third countries, covers solvency calculation only, and it is granted for a period of 10 years.
Provisional equivalence is granted for third countries which may not meet all the criteria for full equivalence but where an equivalent solvency regime is expected to be adopted and applied by the third country within a foreseeable future.
These decisions now need to pass to the European Parliament and the Council for scrutiny, for which the time limit is three months, with possible extension by a further three months.
Publication in the EU Official Journal and entry into force will only take place after successful completion of Parliament and Council scrutiny.
The European Commission has stated that it envisions further Solvency II equivalence decisions in future.
