New York partner Tom Dawson was quoted in a Law360 article titled “States’ Regulatory Role Preserved in US-EU Insurance Pact.” The article discussed a new agreement between U.S. and EU insurers and reinsurers. Significantly, the agreement stipulates that U.S. firms are not bound by Solvency II, the rigorous set of requirements that the EU uses to govern re/insurers.
While U.S. insurers are pleased with the agreement, Tom notes that the agreement has not yet been fully implemented and that the National Association of Insurance Commissioners has yet to establish the regulations that will govern U.S. insurers.
“It seems as though the industry and government entities feel pretty good about what this agreement looks like at the moment, but like everything else, it remains to be seen how U.S. insurers and reinsurers operating in the EU fare over the next couple years,” Tom stated. “There may be some criticism as to what the NAIC does with respect to group capital,” he added.