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European Council authorizes signing of EU-US insurance deal

IBR Staff Writer Published 31 May 2017

The European Council has agreed to the signing of an agreement with the US on insurance and reinsurance.

During a recent meeting of the Competitiveness Council, the decision was adopted to authorize the signing of the agreement without discussion.

Insurers and reinsurers in the EU and the US are expected to get legal certainty in the application of regulatory frameworks once the agreement is signed.

Also, policyholders and other consumers are likely to get enhanced protection through cooperation between supervisors and the exchange of information once the agreement is put into place.

The European Commission (EC) had negotiated the text of the agreement based on a mandate approved by the Council in April 2015. During that period, the Council had authorized the EC to initiate negotiations with the US to reach an agreement on reinsurance.

In January, the negotiations between the US and EC concluded successfully between lead negotiators on either side.

According to the Council, the agreement features provisions on reinsurance, exchange of information and group supervision.

To oversee the implementation of the provisions in the agreement, a joint committee will be established, stated the Council. The joint committee will also provide a platform for the EU and the US to exchange information relating to the proper implementation of the agreement.

The Council further added that its decision enables provisional application of some of the provisions in the agreement based on the completion of the procedures that are mandatory for its conclusion.

It has requested the European Parliament to give consent for the conclusion of the agreement.

Image: Column of flags at the European Commission in Brussels. Image: Corentin Béchade/Commons.wikimedia.org.