U.S. and European Regulators Conclude Covered Agreement Negotiations: U.S. and European Regulators Conclude Negotiations for a Covered Agreement between the United States and the European Union on Insurance and Reinsurance Prudential Measures

Sullivan & Cromwell LLP - January 16, 2017
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On January 13, 2017, U.S. and European regulators concluded negotiations for a “covered agreement” between the United States and the European Union on insurance and reinsurance prudential measures. 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.