EU, US on track to complete insurance agreement

Officials from the United States and the European Union are on the verge of completing a “covered agreement” for regulatory approaches to insurance, according to a joint statement released by negotiators.

“Both sides continued to discuss in good faith matters relating to group supervision, exchange of confidential information between supervisory authorities on both sides, and reinsurance supervision, including collateral,” the statement said.

“US and EU representatives made progress on key issues, and identified next steps toward a possible completion of negotiations in the near future.”

Steve Simchak, director of international affairs at the American Insurance Association, said the industry group is “encouraged” by the progress. Washington-based AIA has pushed for the swift conclusion of covered agreement talks so that US insurers can maintain access to the European market as the EU implements Solvency II.

“It is our hope that an agreement will be reached soon so that U.S. insurers will no longer face discriminatory measures that are increasingly distorting insurance trade with the EU,” Simchak said in a statement.