On March 25, 2021, the United States and the United Kingdom held the first meeting of the Joint Committee established under the U.S.-UK Agreement on Prudential Measures Regarding Insurance and Reinsurance (“the Agreement” hereafter). The United States and the United Kingdom signed the Agreement on December 18, 2018, and the Agreement entered into force on December 31, 2020.
The Agreement—which is a ‘covered agreement’ as defined by the Dodd-Frank Act for the United States—addresses three areas of prudential insurance oversight: (1) reinsurance, (2) group supervision, and (3) the exchange of insurance information between supervisors.
The Joint Committee meeting was conducted by video conference and attended by representatives from the U.S. Department of the Treasury, the Office of the U.S. Trade Representative, Her Majesty’s Treasury, and the Prudential Regulatory Authority of the United Kingdom, as well as by U.S. state insurance commissioners and the Federal Reserve Board.
During this first Joint Committee meeting under the Agreement, participants on both sides discussed progress made toward timely implementation of the Agreement, including the removal of collateral and local presence requirements for reinsurers and the provisions on group supervision measures. In addition, the United States and the United Kingdom affirmed their commitment to the Agreement and to close coordination between the two sides as implementation continues. Consistent with the Agreement, both sides are continuing to encourage relevant authorities to refrain from taking any measures that are inconsistent with any provisions of the Agreement.