Rep. Royce: Covered Agreement Levels the Insurance Playing Field

WASHINGTON, Jan. 13 -- Rep. Ed Royce, R-Calif. (39th CD), chairman of the House Foreign Affairs Committee and a senior member of the House Financial Services Committee, issued the following statement in reaction to the Office of the U.S. Trade Representative and Treasury Department finalizing terms of a U.S.-E.U. covered agreement:

"After the implementation of Solvency II which disadvantaged U.S. companies, this historic agreement gives American reinsurers the opportunity to compete on a level playing field throughout Europe. We will see an end to discriminatory practices which adversely impacted the market. U.S. insurers also avoid the added European tax of global group supervision standards. Billions in savings can be reinvested in the U.S. economy and passed on to consumers," said Rep. Royce. "As Director McRaith's tenure comes to a close, I thank him for his years of dedicated public service and leadership. Without his guidance, this accomplishment would not have been possible."

Last September, Chairman Royce questioned Federal Insurance Office (FIO) Director Michael McRaith about the importance of a U.S.-E.U. covered agreement to protect American insurance firms and consumers during a Housing and Insurance Subcommittee hearing entitled "The Impact of the U.S.-E.U. Dialogues on U.S. Insurance Markets."

Chairman Royce also sent a letter to the Treasury Department and USTR (http://royce.house.gov/Components/Redirect/r.aspx?ID=468645-67941562) urging them to begin the negotiations with the E.U. that led to the agreement.

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