The agreement addresses three areas of prudential insurance oversight:
- group supervision; and
- the exchange of insurance information between supervisors.
US and EU insurers operating in the other’s markets will only be subject to worldwide prudential insurance group oversight by supervisors in their home jurisdiction. With regard to reinsurance, the Agreement will lead to the elimination of collateral and local presence requirements for EU and US reinsurers operating in each other’s markets.
Once consent of the European Parliament and Council has been obtained, the Agreement will fully apply for both sides 60 months after signature.