EU and US Signed Bilateral Agreement on Insurance and Reinsurance
EU and U.S. signed a bilateral agreement on insurance and reinsurance. The agreement will boost consumer protection and cut costs and red tape for EU insurers and reinsurers active in the U.S. In a joint statement, the EU and the U.S. said: “The Agreement represents a major step forward in U.S.- EU cooperation on insurance and reinsurance, conveying benefits to EU and U.S. insurers and reinsurers operating across the Atlantic, by offering them enhanced regulatory certainty, while maintaining robust consumer protections.” The signature allows parts of the agreement to become immediately applicable on a provisional basis. The European Parliament and the Council will need to approve the conclusion of the agreement.
The signature marks the final step in more than 20 years of discussions and a year of formal negotiations between EC and the U.S. Department of the Treasury and Office of the Trade Representative. Regarding reinsurance, the agreement will lead to the elimination of collateral and local presence requirements for EU and U.S. reinsurers operating in each other's markets. In line with the objectives of the Investment Plan for Europe and the Capital Markets Union, the agreement will enable reinsurers to boost their investment capacity. The agreement will enhance consumer protection by facilitating the exchange of information between EU and U.S. supervisors. The agreement also brings prudential benefits: for example, EU insurers and reinsurers will have to prepare only one risk and solvency assessment (ORSA) in light of their risk profiles.
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Keywords: Europe, Americas, EU, United States of America, Insurance, Reinsurance, Bilateral Agreement, ORSA, EC
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