Washington – The U.S. Department of the Treasury and the Office of the U.S. Trade Representative signed the Bilateral Agreement between the United States of America and the United Kingdom on Prudential Measures Regarding Insurance and Reinsurance (U.S.-UK Covered Agreement) on December 18, 2018. Consistent with steps taken when this Administration signed the U.S.-EU Covered Agreement in 2017, the Administration is also issuing a U.S. policy statement regarding implementation of the U.S.-UK Covered Agreement.
The U.S.-UK Covered Agreement, negotiated and concluded through a process involving significant engagement with U.S. stakeholders and the state regulatory community, is an important step in maintaining regulatory certainty and market continuity as the United Kingdom prepares to leave the European Union (EU). The U.S.-UK Covered Agreement also is an important step in affirming the competitiveness of U.S. companies in domestic and foreign markets and making regulations more efficient, effective, and appropriately tailored.
“We look forward to working with the UK to continue to deepen our bilateral regulatory cooperation with a view to the promotion of financial stability, investor protection, and fair, orderly, and efficient markets post Brexit,” said Treasury Secretary Steven T. Mnuchin. “By building on the U.S.-EU Covered Agreement signed by this administration in 2017, the Agreement with the UK will keep in place important benefits for the United States, its insurance industry, and U.S. policyholders.”
United States Trade Representative Robert Lighthizer said, “We are pleased to work with the United Kingdom to ensure continuity and to address barriers in the insurance sector. Our efforts will allow U.S. insurers and reinsurers to maximize business opportunities and cut red tape for their cross-border operations.”
The U.S.-UK Covered Agreement, like the covered agreement with the EU, also benefits the U.S. economy and consumers by affirming the U.S. state-based system of insurance regulation and increasing growth opportunities for U.S. insurers.