"A Monumental Step Towards Regulatory Uniformity," Insurance Day October 17, 2016
“There has been noticeably less discussion surrounding the impact of a covered agreement on EU-based insurers and reinsurers providing capacity in the US. Yet the practical impact of a covered agreement on non-US-domiciled insurers and reinsurers could be significant,” writes Todd D. Kremin, a partner in Goldberg Segalla's Global Insurance Services Practice Group.
In this piece for Insurance Day about ongoing negotiations to create a US-EU “covered agreement,” Todd examines the most “noteworthy” areas of such negotiations for both EU- and US-domiciled insurers. As he notes, one of the biggest differences is that the US insurance market is regulated by individual states, “as well as the states’ insurance commissioners and stakeholders,” he writes, while “…a solvency II-governed Europe has no choice but to operate under the European standard imposed on it. But in the US, there are no such uniform standards.”
But regardless of where the insurers are domiciled, Todd writes, “A covered agreement would be a departure from the toothless international standards. In this respect, a covered agreement would be a monumental step towards regulatory uniformity in the insurance industry.” But the many unanswered questions surrounding the impact on such an agreement on the industry are “…often overshadowed by the overarching question of whether a covered agreement will be implemented at all.”
Read the article here:
- "A Monumental Step Towards Regulatory Uniformity," Insurance Day, October 17, 2016 (subscription required)