Implementation of the EU Reinsurance Directive (2005/68/EC) in Liechtenstein

Liechtenstein has implemented the EU Reinsurance Directive (2005/68/EC) on 1 January 2010 by amending its Insurance Supervision Act and Ordinance. Consequently, statutory rules on capital and solvency as well as non-financial requirements such as risk management, internal control systems and a responsible actuary have been introduced. Whilst the passporting regime now applies with respect to the EEA, third country reinsurers are no longer able to carry on reinsurance business in Liechtenstein on a cross-border basis without equivalent home state supervision.