U.S. and EU Sign Covered Agreement: Covered Agreement Between the United States and the European Union on Insurance and Reinsurance Prudential Measures Is Signed

Sullivan & Cromwell LLP - September 27, 2017

On September 22, 2017, the United States and the European Union jointly announced the signing of a “covered agreement” between the United States and the European Union on insurance and reinsurance prudential measures. U.S. and European regulators completed negotiation of the agreement on January 13, 2017. With regard to reinsurance, the agreement is intended to lead to the elimination of collateral and local presence requirements for EU and U.S. reinsurers operating in those markets. The agreement also provides that EU and U.S. insurance groups operating in the other market will only be subject to worldwide group-level supervision by supervisors in their home jurisdiction. The parties will now move forward to provisional application in accordance with the agreement.