WASHINGTON, D.C. (PRWEB) January 13, 2017
The American Insurance Association hailed the successful completion of a covered agreement on insurance and reinsurance prudential measures between the United States and European Commission. The agreement establishes mutual acknowledgement of prudential supervision in the European Union and the United States, which will eliminate the increasing barriers to U.S. groups operating in Europe.
The Treasury Department’s Federal Insurance Office (FIO) and the U.S. Trade Representative (USTR), which represented the U.S. in the negotiations, will now consult with and submit the agreement to four Congressional committees (House Financial Services, House Ways and Means, Senate Banking and Senate Finance) on a day when all committees are in session, pursuant to the statutory authority for the covered agreement. The agreement becomes effective ninety calendar days after that date. The European Union will have its own internal processes related to the completed covered agreement.
A statement from Leigh Ann Pusey, AIA’s president and CEO, follows:
“We believe that today’s covered agreement is both a win for U.S. insurers and reinsurers competing in the E.U. and a win for the U.S. state-based system of regulation. In recent months, U.S. insurance groups with operations in Europe have increasingly become subject to discriminatory prudential measures due to the implementation of Solvency II. Under today’s agreement, EU supervisors acknowledge and affirm the U.S. insurance regulatory framework and allow U.S. insurers and reinsurers to compete in their markets without the costly and duplicative regulations being imposed on them under Solvency II. In exchange, E.U. insurers and reinsurers will receive fair reciprocal treatment and be able to compete in U.S. markets.
AIA greatly appreciates the hard work of both delegations in getting this across the finish line, and looks forward to reviewing the agreement in further detail. We would like to acknowledge the roles of the USTR, FIO and, particularly, the U.S. state regulators that worked with them to reach a balanced resolution that affirms the U.S. insurance regulatory system and provides clarity to the insurers that operate in it. We look forward to working with all parties involved to implement this agreement that will benefit insurers and reinsurers on both sides of the Atlantic.”