With the news that the ‘covered agreement’ between the U.S. and the European Union (EU) on prudential reinsurance measures was signed on Friday, the playing field has been levelled in reinsurance, according to Insurance Europe.
The European insurance and reinsurance federation said that it welcomed the signing of the agreement, which will enable European reinsurers to operate in the U.S. on a more similar level to U.S. domestic reinsurers.
Cristina Mihai, head of prudential regulation and international affairs at Insurance Europe, commented; “Insurance Europe welcomes the signing of the EU-US bilateral agreement on (re)insurance, and appreciates the significant work and effort by the European institutions and member states over the past two years in the negotiation of this agreement and then in the legislative process ahead of it being signed.
“The agreement removes the collateral requirements that European reinsurers currently face when placing business in the US and therefore supports a level playing between European and US reinsurers. Insurance Europe looks forward to a swift process by the European Parliament, which will be key to a successful conclusion of the agreement.”
The agreement has been long-awaited and now it is here the ramifications for European reinsurance firms will become clearer, with some now able to operate more efficiently in the U.S. market than they were previously.
