Unified insolvency framework discussed for the US, EU

Representatives from the US and European Union met recently to discuss a possible unified framework for reducing insurance companies’ risk of insolvency, a plan that could have major consequences for US insurers, stated a report in the Wall Street Journal.

The move comes after the EU’s unified regulatory approach for insurance took effect January 1, 2016, raising concerns among US insurers with international operations.

The US and EU said in a joint statement Tuesday after the meeting in Brussels that they would move forward on “matters relating to group supervision, exchange of confidential information between supervisory authorities on both sides, and reinsurance supervision, including collateral.” They didn't set a timetable but promised to work “efficiently and expeditiously” to reach agreement.