A joint statement has been issued by the U.S and UK regarding the successful signing of a previously-announced Bilateral Agreement on Prudential Measures Regarding Insurance and Reinsurance (U.S-UK Covered Agreement).
The new U.S-UK Covered Agreement aims at upholding the terms of the U.S-EU Covered Agreement, signed in 2017, which outlined prudential measures for re/insurers operating between the U.S and European Union member states.
Having now been signed, the new agreement provides an important step in ensuring regulatory certainty and market continuity post-Brexit.
The agreement aims to protect insurance and reinsurance policyholders and other consumers whilst respecting each country’s existing system for supervision and regulation.
It will provide for the exchange of confidential information between U.S and UK supervisory authorities and make other practical arrangements for cross-border cooperation post-Brexit.
At the same time, it affirms the U.S state-based system of insurance regulation while increasing growth opportunities for insurers in both the U.S and UK.
In order to achieve continuity, the two countries plan to bring the agreement into force once the UK is no longer subject to the U.S-EU Covered Agreement and domestic processes are complete.
“We look forward to working with the UK to continue to deepen our bilateral regulatory cooperation with a view to the promotion of financial stability, investor protection, and fair, orderly, and efficient markets post Brexit,” said Treasury Secretary Steven T. Mnuchin.
“By building on the U.S.-EU Covered Agreement signed by this administration in 2017, the Agreement with the UK will keep in place important benefits for the United States, its insurance industry, and U.S. policyholders.”
United States Trade Representative Robert Lighthizer added, “We are pleased to work with the United Kingdom to ensure continuity and to address barriers in the insurance sector. Our efforts will allow U.S. insurers and reinsurers to maximize business opportunities and cut red tape for their cross-border operations.”
