ACLI Supports U.S.-EU Covered Agreement

WASHINGTON, Feb. 16 -- The American Council of Life Insurers issued the following statement by President and CEO Dirk Kempthorne in support of the agreement on insurance and reinsurance prudential measures between the United States and the European Union. The statement was submitted for a hearing entitled, "Assessing the U.S.-EU Covered Agreement."

"ACLI believes that the benefits of the covered agreement to the competitiveness of the U.S. insurance industry and to state regulation are immediate and substantial. We urge members of Congress to support it," Governor Kempthorne said in his statement.

"The covered agreement will make U.S.-based insurers and reinsurers more competitive. It respects our state-based system of insurance regulation. It facilitates and encourages coordination and cooperation between U.S. insurance regulators and EU insurance supervisors, which reduces regulatory burdens for the insurance industry on both sides of the Atlantic. It maintains protections for U.S. insurers that buy reinsurance from EU-based reinsurers. It preserves the sovereignty of our U.S. regulators to impose corrective measures on an EU-based reinsurer.

"The agreement also preserves U.S. regulators' authority to impose corrective measures on any EU-based insurer if its financial condition threatens policyholder protection or financial stability."

Download Governor Kempthorne's full statement. (PDF) (https://www.acli.com/-/media/ACLI/Files/Newsroom-News-Releases-Public/021617_ACLIStatement_CoveredAgreementHearing.ashx?la=en)

[Category: Insurance]

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