On December 18, 2018, the Trump administration signed a bilateral agreement on prudential insurance issues between the United States and the United Kingdom (the United States and the United Kingdom). Covered agreement). This is a pro-Brexit version, mentioned only for the UK, of the agreement signed with the European Union in September 2017, which came into force on 4 April 2018. The UK The covered deal will apply when Brexit is effective and the deal comes at a time when uncertainty over Brexit and its potential impact on the global financial services sector will apply. With regard to the exchange of information, the supervisory authorities of both parties are invited to cooperate in the exchange of information in accordance with the practices set out in the agreement attached to the agreement. It deals with three main provisions; Reinsurance, group control and information exchange: yes. The UK government has agreed with the EU on a transitional period for Brexit from 29 March 2019 to 31 December 2020. The United Kingdom will not be able to count on the agreement after the end of the transition period, unless the United Kingdom acts in overtime, which is unlikely. During the transition period or shortly thereafter, the United Kingdom will have to negotiate an agreement with the United States. If the UK is unable to negotiate an agreement that is due to start on 1 January 2021, the position may fall back to the position before the covered agreement.
The FIO Act also authorizes the pre-emption period for U.S. public insurance measures when the DIRECTOR of the FIO finds that the government`s measures are inconsistent with a covered agreement and lead to less favorable treatment to a non-U.S. insurer covered by the covered agreement than a U.S. insurer residing in that state is licensed or otherwise licensed. When NAIC held its first meeting since the covered agreement on February 20, 2018, delegates had a lot to say about the covered agreement, but the general consensus was that another covered agreement was not the answer. Delegates were more interested in extending the covered agreement to non-EU countries (due to a currently non-existent accession process), namely NAIC, which extends the lifting of safeguards to all qualified NAIC countries (currently including Bermuda, France, Germany, Ireland, Japan, Switzerland and the United Kingdom). The agreement is viewed positively by most parts of the Atlantic, as it calls for the eventual end of security and local presence requirements for EU and US reinsurers, which have long been a problem for reinsurers. There is some evidence that EU insurers may be able to recover US$40 billion supplied to the US.
In November 2015, the Ministry of Finance and the USTR began negotiating a secure agreement with the European Union (EU) by telling Congress that a covered agreement with the EU would contribute to a level playing field for US insurers and reinsurers operating in the EU. , the protection of policyholders as well as national and global financial stability. These negotiations resulted in an agreed final legal text, which the Treasury and USTR presented to Congress in January 2017. The Federal Insurance Office Act of 2010 (FIO Act), which was passed as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), created the Federal Insurance Bureau (FIO) within the Ministry of U.S. Finance and authorized the U.S. Treasury and USTR to negotiate “covered agreements” with one or more foreign governments or authorities regarding the recognition of prudential insurance or reinsurance measures that reach a level of protection which reaches a level of protection. consumers of insurance or reinsurance, which correspond essentially to the level of protection achieved by the state regulation on insurance or reinsurance.