Washington, DC (PRWEB) September 27, 2016
Steve Simchak, Director of International Affairs for the American Insurance Association (AIA), issued the following statement after the conclusion of the latest round of covered agreement negotiations between the United States and European Commission, held between September 21-22 in Washington, DC.
The Dodd Frank Act (Dodd-Frank) authorizes the Treasury Department and the U.S. Trade Representative (USTR) to enter into covered agreements with foreign governments on insurance prudential matters. U.S. and EU representatives previously met in Brussels in February 2016 and July 2016, and Washington, DC in May 2016. The European Union is represented by the Directorate-General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA) and the Directorate-General for Trade (DG Trade). U.S. state insurance commissioners also have a significant consultative role in the process.
AIA believes that the covered agreement can be the mechanism through which the U.S. system is recognized as “equivalent” to the EU’s Solvency II Directive, resolving trade distortions that have been created by Solvency II’s implementation.
Mr. Simchak’s statement follows:
“AIA is encouraged by the latest round of covered agreement negotiations and we appreciate the continued efforts of officials on both sides. It is our hope that an agreement will be reached soon so that U.S. insurers will no longer face discriminatory measures that are increasingly distorting insurance trade with the EU. AIA is convinced that resolving these issues through a covered agreement is the best option for regulators and industry on both sides of the Atlantic.
In the meantime, we hope that regulatory authorities will recognize that a process is underway and act accordingly as they implement Solvency II.”
Celebrating its 150th year in 2016, the American Insurance Association (AIA) is the leading property-casualty insurance trade organization, representing approximately 350 insurers that write more than $140 billion in premiums each year. AIA member companies offer all types of property - casualty insurance, including personal and commercial auto insurance, commercial property and liability coverage for small businesses, workers' compensation, homeowners' insurance, medical malpractice coverage, and product liability insurance.