The National Association of Insurance Commissioners has asked the new Treasury secretary to clarify provisions of the covered agreement reached between the United States and the European Union in response to the bloc’s Solvency II directive.
The covered agreement deal negotiated by the U.S. Department of the Treasury under the Obama administration and the Office of the U.S. Trade Representative, announced on Jan. 13, aims to address the fact that the European Commission has not deemed the United States an equivalent jurisdiction, per the EU’s Solvency II directive outlining a risk-based capital regime for insurers and reinsurers in Europe.
Continue Reading “NAIC asks Treasury secretary to review EU-US covered agreement” at Business Insurance News
On the face of it, the insurance covered agreement announced on January 13 should be everything Donald Trump detests. Signed in the final days of Barack Obama’s administration, when Trump had already been elected, the deal is between the US and the European Union – an institution the new president has repeatedly disparaged.
It will pre-empt the authority of individual US state legislators and require them to defer to EU regulation of European insurers in US markets.
On top of that, the agreement was negotiated by the Federal Insurance Office (FIO), an Obama-era creation Republican lawmakers are keen to abolish.
Continue Reading “Deal or no deal? US divided on EU insurance agreement” at Risk.net
NN Group and Delta Lloyd announce today that a conditional agreement (the ‘Merger Protocol’) has been reached on a recommended public offer (the ‘Offer’) to be made by NN Group for the entire issued and outstanding ordinary share capital of Delta Lloyd (the ‘Shares’) for EUR 5.40 in cash per ordinary Delta Lloyd share (cum dividend) (the ‘Offer Price’).
This announcement follows constructive interactions between the boards and management teams of both companies including a period of targeted due diligence.
Lard Friese, CEO of NN Group: ‘Today’s announcement is a significant step in our journey to build a sustainable, profitable business for the future, and to strengthen our leading position in the Netherlands and Belgium..
I value the entrepreneurial spirit, customer focus, the commercial agility, and strong distribution capabilities of Delta Lloyd.
Continue Reading “NN Group and Delta Lloyd agree on recommended transaction” at NASDAQ Globe News Wire
The season of goodwill has been characterised this year by a distinct lack of goodwill between the insurance industry and those who regulate it.
Ever since the Treasury Select Committee decided to investigate how Brexit might affect the industry and how it is regulated, the insurers have closed ranks to complain.
The regulatory problem has recently become more pressing because of developments in the US.
If President-elect Trump fulfils his promise to scale back the Dodd-Frank Act, the centrepiece of US post-crisis banking regulation, it will free up the investment banks to become active traders again on their own account.
Continue Reading “Anthony Hilton: Relax the rules to give our insurers a chance” at Evening Standard
Regulatory requirements across all industries are constantly evolving. Rules are also becoming increasingly intricate because of the overlap involving multiple nations and jurisdictional specifics.
Both the Brexit vote and Trump’s victory have added further uncertainty about the future, leaving CIOs and IT managers in a minefield of business risks and with the responsibility to ensure their companies comply with changing legislation.
The UK voted to leave the European Union on 23 June, but will remain a member but will remain a member until the conclusion of the withdrawal – at least 2019.
Continue Reading “What Brexit and Trump mean for compliance” at Information Age
U.S. regulators recently revealed that they are closing in on a deal with the European Union (EU) that could throw the door wide open for U.S. insurers looking to do business in Europe.
On Tuesday, the Treasury Department and Office of the U.S. Trade Representative announced that progress has been made toward creating a covered agreement with the EU.
Under a covered agreement, America’s insurance regulation could be viewed as equivalent to European oversight, allowing U.S. insurers to operate in the region with little issue.
Under the EU’s current Solvency II insurance regime, jurisdictions not deemed equivalent face more stringent regulation from the bloc’s member countries.
Continue Reading “Deal between US and EU on insurance regulation draws closer” at Insurance Business News
Officials from the United States and the European Union are on the verge of completing a “covered agreement” for regulatory approaches to insurance, according to a joint statement released Tuesday by negotiators.
“Both sides continued to discuss in good faith matters relating to group supervision, exchange of confidential information between supervisory authorities on both sides, and reinsurance supervision, including collateral,” the statement said.
“U.S. and EU representatives made progress on key issues, and identified next steps toward a possible completion of negotiations in the near future.”
Steve Simchak, director of international affairs at the American Insurance Association, said the industry group is “encouraged” by the progress.
Continue Reading “EU, U.S. Say They’re on Track to Completing Insurance Agreement” at Morning Consult News
Insurers say they are encouraged by the most recent developments in the covered re/insurance agreement negotiations between the United States and European Commission.
Following the latest round of the talks, held Sept. 21-22 in Washington, D.C., the United States and European Union released a joint statement citing progress.
“Both sides continued to discuss in good faith matters relating to group supervision, exchange of confidential information between supervisory authorities on both sides, and reinsurance supervision, including collateral,” the joint statement said.
Continue Reading “Insurers Encouraged by Latest Round of Covered Agreement Talks” at Insurance Journal
Recent research provides an insight into how insurers are dealing with life in the long shadow of central bank policy – suggesting European insurers are resigned to rates staying interminably low and have taken to running positive duration gaps.
About half of European firms taking part in the recently released Milliman Derivatives Survey say the duration of their assets over liabilities is greater than one year, compared with none of the participants in the previous year’s survey running such a positive duration gap.
Fewer than one-third of respondents report a negative gap. US insurers, by contrast, are evenly balanced, showing little change.
Continue Reading “Why Europe’s insurers can’t stop buying bonds” at Risk.net News