US and EU must resolve uncertainty over covered agreements

A successful conclusion between the US and European Union must be sought to resolve uncertainty in the global insurance market, according to the Reinsurance Association of America (RAA), following another round of covered agreement negotiations in Brussels.

The RAA is a trade association of proper/casualty reinsurers doing business in the US.

The Treasury Department said that both sides have “identified points of convergence and areas requiring further work, and importantly, developed textual elements for inclusion in a possible agreement.”

Frank Nutter, president of the RAA, said: “We are encouraged by the progress in this latest round of negotiations.

“The impact of Solvency II has fostered uncertainty for US-based companies doing business in EU countries, and a successful conclusion to the covered agreement negotiations is an immediate priority to resolve this uncertainty in the global insurance market.
“We respectfully implore all parties to move forward to a swift conclusion to the negotiations.”