27 January 2017
On 13 January 2017, the European Commission (the "Commission") published
a statement made jointly with the Office of the United States Trade
Representative announcing that the EU and the US have negotiated a bilateral
agreement on prudential measures regarding insurance and reinsurance (the
"Agreement"). The Commission also published the text of the agreement.
The Agreement has been welcomed by many trade associations and reinsurers
since it calls for an end to collateral and local presence requirements for EU and
US reinsurers, which have long been an issue for reinsurers operating
internationally. This paper highlights the key areas of the Agreement and
considers its potential effect on third country (re)insurers, including those in
Solvency II equivalent jurisdictions and, following the Brexit referendum result,
looks at the potential impact for (re)insurers based in the UK.