On September 22, the Office of the US Trade Representative announced that the US Treasury Department, the Office of the US Trade Representative (USTR) and the European Union had signed a bilateral agreement on prudential insurance and reinsurance regulation. The agreement applies both the US Dodd-Frank Act and Article 218 of the Treaty on the Functioning of the European Union, covering prudential insurance regulation in three areas: reinsurance, group supervision and the exchange of insurance information.

        This agreement will lead to the reduction of bilateral and local-presence regulatory requirements between the US and the EU on each other's reinsurance. Under the agreement, US and EU insurers operating in each other's markets need only be supervised by their home insurance regulators. The agreement affirms US state insurance regulators as the primary supervisors of US insurance business.

       The agreement includes model memorandum-of-understanding provisions on information sharing, encouraging US and EU insurance supervisory authorities to continue exchanging supervisory information on (re)insurers operating in the US and the EU.

       The agreement can be regarded as a model of US-EU cooperation on insurance and reinsurance, strengthening supervision while maintaining sound consumer protection, benefiting both sides of transatlantic insurance and reinsurance business between Europe and the US.

        US Trade Representative Robert Lighthizer said the agreement signed with the EU provides development support for the US insurance industry and thereby strengthens US competitiveness in the EU. The agreement will be implemented in step with US policy, advancing US interests by protecting consumers and reducing the pressure on US insurers from burdensome EU regulatory compliance requirements.

        US Treasury Secretary Mnuchin said the agreement, by clarifying regulation and reducing regulatory burdens, will enhance the competitiveness of US insurers in Europe and increase opportunities for US insurance and reinsurance companies.

2017-09-28