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3/19/2020

Joint Statement On Upcoming Signature of the Bilateral Agreement Between The European Union and The United States of America on …

Joint Statement On Upcoming Signature of the Bilateral
Agreement Between The European Union and The United States
of America on Prudential Measures Regarding Insurance and
Reinsurance
September 22, 2017

WASHINGTON/BRUSSELS - “The United States and European Union are pleased to announce
the upcoming signature of the EU - U.S. agreement on prudential insurance and reinsurance
measures (“the Agreement” herea er) that will take place on the a ernoon of Friday, September
22. Both sides announced on 14 July 2017 their intention to sign the Agreement.
The Agreement represents a major step forward in U.S. - EU cooperation on insurance and
reinsurance, conveying benefits to EU and U.S. insurers and reinsurers operating across the
Atlantic, by o ering them enhanced regulatory certainty, while maintaining robust consumer
protections.
The Agreement – which is a ‘covered agreement’ in the meaning of the Dodd-Frank Act for the
United States and an Agreement under Article 218 of the Treaty on the Functioning of the
European Union for the EU – addresses three areas of prudential insurance oversight: (1)
reinsurance; (2) group supervision; and (3) the exchange of insurance information between
supervisors.
With regard to reinsurance, the Agreement will lead to the elimination of collateral and local
presence requirements for EU and U.S. reinsurers operating in each other's markets.
Regarding group supervision, by virtue of the Agreement, U.S. and EU insurers operating in the
other’s markets will only be subject to worldwide prudential insurance group oversight by
supervisors in their home jurisdiction.
The Agreement also encourages insurance supervisory authorities in the United States and the
EU to continue to exchange supervisory information on insurers and reinsurers that operate in
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3/19/2020

Joint Statement On Upcoming Signature of the Bilateral Agreement Between The European Union and The United States of America on …

the U.S. and EU markets. To support such information exchange between supervisory
authorities, the Agreement includes model information sharing memorandum of understanding
provisions.
The United States and the EU look forward to successful implementation of the Agreement,
including through the Joint Committee established by the Agreement. The Agreement provides
meaningful benefits for U.S. and EU insurance consumers and for U.S. and EU insurers and
reinsurers that operate in both markets. The Parties will now move forward to provisional
application in accordance with the Agreement. The European Union will also follow the
necessary steps, involving the Council and the European Parliament pursuant to the Treaty on
the Functioning of the European Union, to formally conclude the Agreement.
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