UK and US sign Bilateral Agreement on insurance and reinsurance matters

The UK and the US signed the Bilateral Agreement between the United States and the United Kingdom on Prudential Measures regarding Insurance and Reinsurance on 18 December, although the announcement was made today by way of a joint statement from HM Treasury, US Treasury and Office of the US Trade Representative on Signing the UK-US Covered Agreement.

Covered agreements such as this aim to achieve a level of protection for consumers that is broadly equivalent to a level of protection achieved in another party’s supervisory and regulatory system.

The Agreement provides that for the United States, prudential measures applicable in the UK, “achieve a level of protection for policyholders and other consumers with respect to reinsurance cessions and group supervision consistent with the requirements of the Federal Insurance Office Act 2010“.

The Agreement offers a positive step for the insurance and reinsurance market as it provides regulatory certainty and market continuity at a time when the UK’s position on leaving the EU is very much unknown.


FIN. Team