The Department of Treasury and the Office of the U.S. Trade Representative announced Nov. 20 their intention to begin negotiations on a “covered agreement” with the European Union. A covered agreement is an agreement between the U.S. and one or more foreign governments, authorities or regulatory entities regarding prudential measures with respect to insurance or reinsurance. During the negotiations Treasury and USTR will seek recognition of certain prudential measures to ensure a more level playing field for U.S. firms.
Federal Insurance Office Director Michael McRaith observed that this agreement represents “a critical step toward leveling the playing field for American insurers and reinsurers.” He added that U.S. negotiators will consult and engage with the U.S. Congress, state regulators and other stakeholders in an effort to pursue a covered agreement that provides tangible benefits for the U.S. insurance industry and consumers.
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