National Association of Insurance Commissioners (NAIC) president Ted Nickel has described the covered agreement between the US and EU as “disappointing”.
The US Treasury and the Office of the US Trade Representative (USTR) completed negotiations with the EU on 13 January. The agreement provides a mutual agreement of prudential supervision in the EU and the US, which will eliminate the increasing barriers to US groups operating in Europe.
Nickel said in reaction to the agreement: "After more than a year of secret meetings, it’s disappointing that in the waning days of the [Obama] administration we are finally seeing the details of what purports to be a covered agreement between the US and EU.”
State insurance regulators and attorneys from the NAIC are currently reviewing the agreement.
According to the NAIC, the review will seek to ensure consumers remain protected and US companies are not competitively disadvantaged relative to foreign insurers.
Nickel added: “As most state regulators were not allowed to participate in the process, the NAIC is coordinating a thorough review of the agreement to ensure consumer protections are not compromised through the preemption of state law, and we encourage Congress to do the same.”
“Of great concern is the potential to use this agreement as a backdoor to force foreign regulations on US companies.”