The American Insurance Association applauded a covered agreement between the United States and European Commission that sets mutual acknowledgement of prudential supervision in the EU and United States and removes barriers for U.S. insurance groups operating in Europe.
Leigh Ann Pusey, AIA’s president and CEO, called it a “win” for U.S. insurers competing in Europe, which had been subject to discriminatory prudential measures due to the E.U.’s Solvency II directive governing insurance companies.
“Under today’s agreement, EU supervisors acknowledge and affirm the U.S. insurance regulatory framework and allow U.S. insurers and reinsurers to compete in their markets without the costly and duplicative regulations being imposed on them under Solvency II,” said Pusey. “In exchange, E.U. insurers and reinsurers will receive fair reciprocal treatment and be able to compete in U.S. markets.”
The agreement will now be submitted by the Treasury Department’s Federal Insurance Office (FIO) and the U.S. Trade Representative (USTR) to four committees – House Financial Services, House Ways and Means, Senate Banking and Senate Finance – for authorization on a day when all committees are in session. It will become effective 90 days after approved.
“AIA greatly appreciates the hard work of both delegations in getting this across the finish line, and looks forward to reviewing the agreement in further detail. We would like to acknowledge the roles of the USTR, FIO and, particularly, the U.S.,” Pusey said. “We look forward to working with all parties involved to implement this agreement that will benefit insurers and reinsurers on both sides of the Atlantic.”