Bilateral Insurance Agreement between US & EU Signed

10/10/17 – The European Union and the United States have signed a Covered Agreement to open up access for insurance firms to each other’s markets and decrease collateral requirements for transatlantic reinsurers.

The agreement will eliminate obligations that reinsurers to post collateral when signing contracts across the Atlantic. Additionally, the agreement will terminate requirements for reinsurers to maintain a local branch or office in their host jurisdiction. Both sides will now meet regularly through a joint committee to discuss how the deal will be implemented.  The new provisions are expected to apply in full force within around five years.

The Covered Agreement addresses three areas of prudential insurance supervision:

Group supervision:

Reinsurance:

The exchange of information between supervisory authorities:

For more information, please reference our previous blog on the Covered Insurance Agreement.

Treasury Press ReleaseCovered Agreement Fact Sheet.

 

CFPB Releases Spring 2017 Rulemaking Agenda

The CFPB announced the publication its Spring 2017 rulemaking agenda.

Hot Topic: CFPB Cannot Regulate Optional Insurance Sales

Dodd-Frank limits the CFPB's jurisdiction over insurance. Though the CFPB can exercise some authority over insurance activities, their reach should not extend to optional sales by banks.

Hot Topic: A Survey of CFPB's UDAAP Actions

This summary of each enforcement action by the CFPB can help companies avoid UDAAP violations.