EU and US sign bilateral agreement on insurance and reinsurance
The EU and the US are signing the bilateral agreement on insurance and reinsurance today, the European Commission said on Sept. 22.
The signature marks the final step in more than 20 years of discussions and a year of formal negotiations between the European Commission and the US Department of the Treasury and Office of the Trade Representative.
The agreement will boost consumer protection and cut costs and red tape for EU insurers and reinsurers active in the US.
In their joint statement, the EU and the US said: “The Agreement represents a major step forward in US- EU cooperation on insurance and reinsurance, conveying benefits to EU and US insurers and reinsurers operating across the Atlantic, by offering them enhanced regulatory certainty, while maintaining robust consumer protections.”
In line with the objectives of the investment plan for Europe and the Capital Markets Union, the agreement will enable reinsurers to boost their investment capacity. EU reinsurers estimate that they have about $40 billion of collateral posted in the US, which could instead be invested to create jobs and growth. The opportunity cost is estimated at around $400 million per year.
The agreement will enhance consumer protection by facilitating the exchange of information between EU and US supervisors, according to the statement. The agreement also brings prudential benefits: for instance, EU insurers and reinsurers will have to prepare only one risk and solvency assessment (ORSA) in light of their specific risk profile, the EU Commission explained. This assessment will also be used by US supervisors. The signature allows parts of the agreement to become immediately applicable on a provisional basis. The European Parliament and the Council will need to approve the conclusion of the agreement.
Dave Matcham, chief executive of the International Underwriting Association, commented:
“The EU-US covered agreement offers a number of business advantages to both sides and I am pleased to see its signing today after several months of review and many years of formulation. I am looking forward now to a speedy implementation of the deal which sets an important standard for greater mutual recognition between regulatory authorities. I hope it will prove to be an example that others are able to follow creating a fairer and more efficient global insurance industry.”
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk
Editor's picks
Editor's picks
More articles
Copyright © intelligentinsurer.com 2024 | Headless Content Management with Blaze