Concerns over EIOPA consultation on cross-border reinsurance
The American Council of Life Insurers (ACLI), the American Property Casualty Insurance Association (APCIA) and the Reinsurance Association of America (RAA) have all praised Insurance Europe’s response to the European Insurance and Occupational Authority’s (EIOPA) consultation on cross-border reinsurance.
Insurance Europe expressed serious concerns in its consultation response to EIOPA’s supervision of reinsurance plans. It specifically mentioned the authority’s draft Supervisory Statement on the supervision of reinsurance concluded with third countries’ re/insurance undertakings.
Insurance Europe expressed a number of concerns including clarity of objectives, its legal framework and consistency and the clarity of EIOPA’s approach. Insurance Europe said it is unclear what problem EIOPA is aiming to address.
It also noted that potentially restricting market access of non-EU reinsurers to the EU, could potentially make EU reinsurance less attractive overseas. “Cross-border reinsurance and access to global capital play a key role in addressing the protection gap, and this needs to be reflected in the statement,” Insurance Europe said.
“We applaud Insurance Europe for its comments on the EIOPA consultation on supervision of reinsurance. In our own comments, we share its call for EIOPA to support the EU-US Covered Agreement that recognises the equivalence of the US regulatory system’s oversight of reinsurers,” the insurance bodies said in a joint statement.
“This agreement is essential in enabling reinsurers to operate across borders while preserving important consumer protection.
“ACLI, APCIA and RAA look forward to continuing their cooperation with Insurance Europe in reaffirming the importance of the EU–US Covered Agreement and its benefits for EIOPA.
“By working together, we can build a regulatory framework that provides for sound supervision, supports a financially strong marketplace and ensures consumers can access the financial protection they want and need.”
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