A group of insurance industry associations issued a joint statement supporting the modernization of the North America Free Trade Agreement (NAFTA), adding that the treaty has been beneficial to the operations of their member companies.
“The North American Free Trade Agreement (NAFTA) has significantly benefitted the insurance markets in Canada, Mexico and the United States,” the statement said. “It has facilitated increased trade, improved customer choice, allowed for the provision of more services and has fostered growth and greater cooperation among government policy makers, regulators and insurers in all three countries.”
It was signed by the American Council of Life Insurers, American Insurance Association, Canadian Life and Health Insurance Association, Insurance Bureau of Canada, and Mexican Association of Insurance Companies.
“For insurers, NAFTA provided for the removal of ownership restrictions, allowing established companies to compete in each other’s markets based on customer service and reputation, not national origin,” the statement said. “This has served to improve consumer access to vital insurance products and services and has allowed companies to adapt to their client needs. These improvements stem from increased competition and will continue to allow consumers to seek solutions that best fit their individual needs. NAFTA commitments also create a non-discriminatory government procurement market and provide important protections for investors.”
The statement added that NAFTA has created regulatory environments that support innovation, market efficiency and regulatory transparency.
“Its benefits are as important today as they were when the agreement was implemented in 1994,” the associations said. “Although the three markets have differences in regulation and supervision, NAFTA has facilitated a vibrant mechanism for improved dialogue among regulators and has created an environment which has allowed the markets to grow and increase their competitiveness.”
The NAFTA Financial Services Committee has been critical to its success, the associations said.
“The committee provides a forum for government policy makers and regulators from Canada, Mexico and the United States to meet annually to discuss regulatory developments in their respective countries and focus on issues of concern,” the statement said. “The NAFTA Financial Services Committee has been a valuable mechanism to resolve trade issues though consultation and education instead of lengthy and costly disputes.”
The industry associations do support efforts to modernize NAFTA so that it more effectively addresses modern business realities and technologies.
“Recognizing the vital contribution that NAFTA has played in all three markets, we look forward to working with our governments to ensure that their modernization efforts enhance the existing benefits the NAFTA provides,” the statement said. “Through the modernization efforts, we believe that NAFTA will continue to successfully serve the best interests of insurance consumers and companies in the three countries.”