The US Department of Treasury and the Office of the US Trade Representative intend to sign the UK-US covered agreement, to provide regulatory certainty and continuity to the insurance market ahead of Brexit.
The Office of the US Trade Representative announced its intent to sign the bilateral agreement between the UK and US on prudential measures regarding insurance and reinsurance today (12 December).
With the uncertainty that still surrounds Brexit, the agreement is an important step in providing regulatory certainty and market continuity ahead of the UK’s scheduled exit from the EU on 29 March 2019.
The statement from the Office of the US Trade Representative said the agreement benefits the US economy and consumers “by affirming the US state-based system of insurance regulation and increasing growth opportunities for US insurers”, in addition to “making US companies more competitive in domestic and foreign markets.
The statement added that it would additionally make “US companies more competitive in domestic and foreign markets and making regulations more efficient, effective, and appropriately tailored”.
In a previous statement, the National Association of Insurance Commissioners (NAIC) described the UK as an “important market” for US transatlantic insurance activity and said it appreciated the commitment “to ongoing coordination with state regulators as the process moves forward”.