Stakeholders are currently discussing the cost and implications of equivalence to figure out how realistic it would be to achieve, according to people familiar with the matter.
Guernsey is hoping to come to a consensus on an approach by late April or early May. Once the decision has been made, dialogue with the Guernsey regulator and government would need to be started.
It is understood the Guernsey regulator and government would support the industry consensus.
Potential advantages for Guernsey being put forward include simplified access to a wider range of reinsurance buyers and increased attractiveness as a home for reinsurance capital.
Bermuda was the last jurisdiction to achieve equivalence with Solvency II.
When implementing the directive, Bermuda decided on a bifurcated approach to Solvency II, whereby only commercial insurers would qualify as Solvency II-equivalent, leaving captives out of its scope.