Despite the continuing uncertainty surrounding Brexit, US insurance groups say that the agreed US-UK agreement is in the right direction and is an important step in ensuring the continuity of business after the UK has left the European Union.
In December, the US Tax Department and the Office of the US Trade Representative signed an agreement on the Insurance and Reinsurance Regulation with the United Kingdom for Brexit. That agreement was consistent with the agreement signed by the United States with the European Union in 2017 confirmed the management organization's management.
As previously reported by Insurance Insurance the agreement covered by the United Kingdom with the United Kingdom deals with the same three areas as the agreement with the European Union: group supervision, reinsurance and information exchange between regulatory authorities. The agreed agreement with the United Kingdom also includes the elimination of collateral and local attendance requirements for US reinsurance companies.
In response to a request for comment, a spokesman referred to the Insurance Commissioners' Insurance Agency Corporate Insurance to a statement from December 201
"NAIC is still reviewing the US / UK covered agreement text, but at the first inspection it seems Treasury and USTR have mirrored the terms of the agreed US / EU agreement and largely replicated it for the UK, in line with our expectations, "said the NAIC statement.
Essentially, the purpose of negotiating the agreement between the United States and the United Kingdom was "to ensure continuity and to minimize disturbances that would occur to US insurance companies and reinsurance companies in the light of Brexit," said Steve Simchak, vice president and chief executive officer for international advice for the American Property Casualty Insurance Association. 19659002] Ensuring continuity is very important for US insurance companies because they do "a lot of business" in the UK, Simchak said.
Another reason why the US-UK agreement is important is that it gives recognition to the UK by the US regulatory system, he said.
"This means that the UK regulator will not assert itself as the global group leader for US groups because the United Kingdom is acknowledged by the US Group Monitoring in the United States," says Mr Simchak.
The agreed agreement states that from the United States and United Kingdom insurance companies operating in the other US and UK markets are subject only to the Global Insurance Group Supervision of supervisors in their home jurisdictions.
The current status of the agreed US-UK agreement is that it is below one 90-day consultation time according to the Dodd-Frank Wall Street Reform and the Consumer Protection Act, where Congress is reviewing the agreement, said Karalee Morell, senior vice president and general secretary of the Washington-based reinsurance association America.
"We are in that period, although we do not anticipate – and I understand it has not happened – some objections ".
At this point, the agreed agreement is not considered an international agreement," said Jonathan Bergner, deputy vice president of federal finance at the National Association of Mutual Insurance Companies Washington office.
But the agreement between the US and the EU still applies, and the whole language is virtually identical, so "as practical matter, the United States already fulfills its side of
When the 90-day consulting period ends on 10 or 11 March, the agreement will with the UK being in place, he said.
United States – Uncovered agreement will not be fully operational until the 90-day consultation period ends and until there is a final resolution regarding Brexit, "until Brexit happens, Britain is still part of the EU and would still be covered by the US -EU agreement, "RAA's wife Morell said.
" Because of Britain's importance as an insurance center in Europe and because of the uncertainty surrounding Brexit, I generally believe that has known a formal US-UK covered contract is ag ood thing because it provides clarity and security, "she said.
Both the US and UK agreements and negotiating a mutual f rdelaktigt trade agreement between the US and the UK will be important for insurance and reinsurance in the United States, as both will regulate the conditions for companies to operate in the UK after Brexit said APCIA's Mr. Simchak.
"Both agreements will be welcomed, since both agreements will support the market access and fair treatment ideals of the United Kingdom for US insurance companies and reinsurance companies," he said.
In a testimony given at a public hearing such as Simchak's office in the US trade representative in Washington on January 29, regarding the proposed US-UK trade agreement, Simchak stressed the importance of promoting increased regulatory cooperation and modernizing cross-border insurance for market access and data rules.
Hearing was part of the public announcement and commentary process following the USTR's announcement to Congress on October 16 that the Trump administration intended to enter into negotiations with the United Kingdom on a trade agreement between the United States and the United Kingdom after the United Kingdom left the European Union.