The US Department of the Treasury and the Office of the US Trade Representative have revealed their intent to sign the bilateral agreement between the US and EU regarding insurance and reinsurance.
The date of the agreement is still to be confirmed.
It was also announced that the US administration plans to issue a policy statement on implementation in the coming weeks.
In a statement, the US Department of the Treasury said: “This is an important step in making US companies more competitive in domestic and foreign markets and making regulations efficient, effective and appropriately tailored.”
“Furthermore, the bilateral agreement benefits the US economy and consumers by affirming America's state-based system of insurance regulation, providing regulatory certainty, and increasing growth opportunities for US insurers.”
The European Council authorised the signing of the US-EU covered agreement on insurance and reinsurance at a meeting on 29 May, paving the way for its passage on the other side of the Atlantic.
The covered agreement eliminates collateral and local presence requirements for qualified reinsurers and meaningfully streamlines group supervision requirements for insurers and reinsurers operating in both jurisdictions.
Without a signed agreement, US companies would have been unable to renew or write new business in the EU without first establishing a local presence in each EU member state in which they intend to write business.
Frank Nutter, president of the Reinsurance Association of America, commented on the announcement: “We thank the many individuals in the federal and state government who worked tirelessly during the past two years to advance this important initiative.”
Nutter added: “The covered agreement enhances the ability of US companies to do business in the EU. The US and EU are establishing a model of regulatory cooperation that other jurisdictions should follow.”
