Solvency II regulations bad for business, warns RAA

Solvency II regulations could have negative consequences for US insurers and reinsurers, the Reinsurance Association of America (RAA) has warned in a Ways and Means Committee letter to Treasury Secretary Jacob Lew and US Trade Representative (USTR) Michael Froman.

The letter, written by committee chairman Kevin Brady and Ranking Member Sander Levin, urges the Treasury and USTR to address the European Union’s discriminatory practices against US re/insurers as they continue covered agreement negotiations.

“The negotiations also provide an important opportunity to end the uncertainty and potentially significant business losses faced by US insurers because of the EU’s discriminatory treatment,” the letter stated.

Frank Nutter, president of the Reinsurance Association of America, said: “Without a successful conclusion to the covered agreement negotiations, US insurers and reinsurers will be at a competitive disadvantage doing business in the European Union, facing onerous regulatory discrimination that inhibits access to markets.

“We look forward to working with Congress, the Federal Insurance Office and the US Trade Representative to bring these negotiations to a timely conclusion and one that is mutually satisfactory to all parties.”