Finance Minister Paula Cox was in Brussels last week for talks with European Union officials as the Island strives to stay ahead of rival jurisdictions in the race to gain recognition for its regulatory framework as meeting international standards.

New rules on capital requirements and corporate governance — known as Solvency II — are due to be introduced in the EU in 2012.

The Bermuda Monetary Authority, the Island's financial regulator, has been strengthening its insurance regulations to meet Solvency II standards, in order to achieve "third country equivalence".

This is of high importance to Bermuda, as failure to get equivalence would leave Bermuda insurance companies doing business in EU countries at a competitive disadvantage.

Minister Cox said yesterday: "One of the key objectives of the meetings was to discuss issues of equivalence including, but not limited to, the importance of being included in a first wave assessment pursuant to the third country provisions set down in the Solvency II directive and Bermuda's economic contribution to Europe."

Bradley Kading, president of the Association of Bermuda Insurers and Reinsurers (ABIR), explained the importance of Ms Cox's visit to the Belgian capital.

"Bermuda needs to be considered on the first wave assessment by the European regulators," Mr. Kading said.

"If Bermuda is not, then a market advantage is provided to reinsurers located in jurisdictions like Switzerland or the US that might gain equivalency before Bermuda. European business will likely flow to reinsurers located in equivalent jurisdictions because it affords regulatory efficiencies.

"That would be bad for Bermuda's insurers and their employees."

He added: "Bermuda has to be both on the first wave list, and then be found to meet European regulatory standards.

"The Deputy Premier very effectively promotes the interests of Bermuda in Europe. She wowed a small group of European regulatory and political officials and insurance executives with her dinner speech.

"There are both political and regulatory hurdles in this effort. BMA CEO Jeremy Cox and his team have to make the technical case. There is much work to be done, but the BMA and the Government are moving aggressively to get it done."

Solvency II is just one aspect of a global tightening of standards of financial services regulation given urgency by the global financial crisis.

Ms Cox's talks covered a wide span and she said she took the opportunity to set out the Government's position on international cooperation.

"The international community has embarked upon an ambitious agenda of regulatory, tax, and, fiscal reforms," Minister Cox said. "Working in close partnership with the BMA, ABIR, the Institute of Chartered Accountants of Bermuda as well as the Business Bermuda Sub-Committee on Investment Funds, the Government of Bermuda has enhanced its outreach within Europe to address new standards in the areas of insurance, funds and fund management, as well as audit oversight."

While in Brussels, the Minister attended an International Insurance Regulatory Dialogue hosted by ABIR.

Guest speakers included high level representatives from ABIR; the Financial Stability Board; the European Commission; the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS); the European Insurance Association (CEA); and the International Association of Insurance Supervisors (the IAIS).

The Minister was accompanied by Travis Gilbert, legislative assistant at the Ministry of Finance and Alastair Sutton, a partner with White & Case.

The Ministry was supported by BMA CEO Jeremy Cox, Roger Scotton of the BMA, Axis Capital chairman Michael Butt, PartnerRe CEO Patrick Thiele, Arch Capital CEO Constantine (Dinos) Iordanou, XL Capital CEO Mike McGavick, and Mr. Kading.