The man spearheading the development of the new Solvency II rules for insurers in Europe will take part in a panel discussion with top executives from the Bermuda market in Hamilton today.

Karel Van Hulle, head of Unit Insurance and Pensions, Financial Institutions for the European Commission, will appear at the Bermuda Monetary Authority’s inaugural International Regulatory Forum.

The event will take place at Fairmont Hamilton Princess, from 2pm to 5pm.

Before the Forum, Mr Van Hulle will be the guest speaker at the Bermuda Insurance Institute’s Christmas Networking Lunch, at the same venue.

Solvency II, which is scheduled to take effect in 2013, will require insurers in the European Union to hold more capital, as well as bolster standards of corporate governance and transparency. The aim is to protect policyholders.

The BMA is striving to achieve “third country equivalence” with Solvency II to ensure that Bermuda companies writing business in Europe are not competitively disadvantaged by the new rules.

There is still uncertainty over how Solvency II will impact Bermuda’s huge market of captive insurers, entities that provide insurance for their parent corporations.

The BMA has stated that it does not wish to change its regulatory regime for captives, since their business is considered much less risky than that of commercial insurers underwriting third-party risks.

Joining Mr Van Hulle on the Forum’s opening panel, entitled “Is Solvency II the New Normal for Global Insurance Supervision?” will be XL Group chief executive officer Mike McGavick, Axis Capital chairman Michael Butt and BMA CEO Jeremy Cox.

The stage will be set for an interesting debate. In several conference appearances, Mr McGavick has argued that raising capital requirements is unnecessary for the insurance industry and that Solvency II could curb the ability of insurers to do their job.

The second panel will include Catlin Group CEO Stephen Catlin, as well as Gabriel Bernadino, chairman of the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS), the agency that will conduct third country regulatory equivalency assessments.

Joining them to discuss the challenges and preparation requirements for Solvency II will be Shanna Lespere, director, Insurance Supervision, Complex Institutions, at the BMA and Alberto Corinti, deputy director, CEA, the European insurance and reinsurance federation.

Roger Scotton, international affairs adviser at the BMA will moderate the first panel and Brad Kading, president and executive director of the Association of Bermuda Insurers and Reinsurers, will moderate the second.

The Forum has been over-subscribed, indicating a high level of interest from the market. Mr Cox said the BMA appreciated the industry’s support for the event.

“Their support is a clear indication of the level of engagement the Bermuda market has on topics as significant as Solvency II, and we look forward to an afternoon of high-calibre debate and discussion,” Mr Cox said.

The BMA intends to broaden the scope of future events to cover topical issues in the banking and investment sectors, as well as insurance.