Bilateral Agreement between the European Union and the United States of America on prudential measures regarding insurance and reinsurance

Further information:

The Agreement lays down an appropriate prudential framework to be applied to insurers and reinsurers from both Parties. It covers three areas: group supervision, reinsurance and exchange between supervisors.

+ It sets out the conditions for group supervision in both Parties of their respective insurance and reinsurance groups;
+ It lays down the prudential conditions to be applied for the removal of local presence and collateral requirements for reinsurers regulated and supervised in the other Party;
+ It contains provisions and, in an annex, a model memorandum of understanding for the exchange of information between supervisory authorities in the EU and the US.

Background:

On 21 April 2015 the Council of the European Union issued a mandate to the European Commission to negotiate an agreement with the United States of America on insurance and reinsurance. Pursuant to this decision and the negotiating directives, the European Commission negotiated a Bilateral Agreement with the US on prudential measures regarding insurance and reinsurance during the course of 2016.

On 4 April 2017 the European Commission adopted a proposal for a Council Decision on the signing and provisional application of the Agreement. A proposal for the conclusion of the Agreement was published in parallel.

The Council of the European Union authorised the signing and provisional application of the Agreement by Council Decision (EU) 2017/1792 of 25 May 2017.

Council Decision (EU) 2018/539 approving the conclusion of the Agreement was adopted at a meeting of the General Affairs Council on 20 March 2018.

Council of the European Union: Press Release, 20.03.18: EU-US insurance agreement concluded http://www.consilium.europa.eu/en/press/press-releases/2018/03/20/eu-us-insurance-agreement-concluded/

European Parliament: At a Glance, 22.02.18: EU-US bilateral agreement on prudential measures regarding insurance and reinsurance http://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_ATA(2018)614713

United States: Congressional Research Service: What is the proposed US-EU insurance covered agreement? https://www.everycrsreport.com/reports/IN10648.html

United States: US Department of the Treasury: Federal Insurance Office: US and EU covered agreement https://www.treasury.gov/initiatives/fio/Pages/EU_Covered_Agreement.aspx

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