The United States and the European Union in September 2017 signed an agreement that will help U.S. insurers and reinsurers operate in the E.U. by ending Solvency II (S2) regulatory barriers.
The American Insurance Association said the agreement provides mutual acknowledgement of prudential supervision in both the E.U. and the United States, and will eliminate barriers that U.S. insurers have faced since S2 was implemented. For reinsurance, the agreement means the elimination of collateral and local presence requirements for E.U. and U.S. reinsurers operating in each other’s markets.
The National Association of Insurance Commissioners (NAIC), which had been critical of the agreement earlier this year, said the Treasury Department and the U.S. Trade Representative representing the United States in the negotiations clarified the interpretations of the covered agreement in certain areas NAIC sought to better understand, including capital, group supervision and reinsurance.
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