U.S. and EU Announce Insurance and Reinsurance Covered Agreement

24 January 2017
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Key takeaways

  • The U.S. and the EU announced the completion of negotiations for an agreement with respect to three areas of prudential insurance supervision: reinsurance, group supervision and information exchange (the “Covered Agreement”).
  • Under the Covered Agreement, reinsurance collateral requirements would be reduced and physical location requirements eliminated, provided the reinsurer meets minimum capital and prudential standards.
  • The Covered Agreement emphasizes the significance of group-wide insurance and reinsurance supervision and contemplates the implementation of a group capital assessment.