WASHINGTON – The U.S. Department of the Treasury (Treasury) and the Office of the U.S. Trade Representative (USTR) today (September 22) signed a covered agreement (the Agreement) on prudential insurance and reinsurance measures with the European Union (EU). Treasury and USTR also jointly issued a policy statement clarifying how the United States views implementation of certain provisions of the Agreement.
The Agreement addresses three areas of prudential insurance supervision: group supervision, reinsurance, and exchange of information between supervisory authorities. The Agreement affirms the U.S. system of insurance regulation, including the role of state insurance regulators as the primary supervisors of the business of insurance in the United States.
“After extensive stakeholder engagement and review, Treasury has concluded that the covered agreement with the EU is a win for the United States, its insurance industry, and U.S. policyholders,” said Treasury Secretary Steven T. Mnuchin. “By providing regulatory clarity and reducing regulatory burden, the Agreement enables American companies to be more competitive in the EU, enhances opportunities for U.S. insurers and reinsurers at home and abroad, and furthers the administration’s goal of sustained economic growth.”
U.S. Trade Representative Robert Lighthizer said, “The Agreement with the EU levels the playing field for the U.S. insurance industry, thereby strengthening American competitiveness in the EU. The Agreement, which will be implemented consistent with the U.S. policy statement, promotes U.S. interests by protecting consumers here at home and relieving U.S. insurers of compliance with potentially redundant EU regulatory requirements.”
The United States is committed to promoting the interests of U.S. insurers, U.S. reinsurers, U.S. insurance regulators, U.S. consumers, and the U.S. economy as the Agreement is implemented. The United States will continue its engagement with stakeholders and state regulators as implementation of the Agreement moves forward.