The Treasury Department appears to be sitting on a transatlantic insurance deal that the
US inked with the European Union in January to boost the $3 billion insurance and reinsurance industry between the two markets.
Provisions of the agreement include lifting regulatory requirements and reinsurance capitalization limits, measures which are expected to reduce legal and capital barriers perceived to be impeding insurance exchanges between the US and 28 EU member countries.
A report by Bloomberg said that Treasury Secretary Steven Mnuchin has ordered staff to continue engaging with key stakeholders to assess the full effects of the agreement on the US insurance industry.
Furthermore, the National Association of Insurance Commissioners (NAIC), which represents regulators across the country, confirmed to Bloomberg that its staff met with Treasury officials last week. NAIC told the department in the meeting that more clarity and certainty is needed before the agreement is signed.
The 90-day review period expires in April, but the Treasury Department can still approve the measure towards becoming a law after the deadline.
The American Insurance Association (AIA) is a pro-deal group. Steve Simchack, director of international affairs at AIA, told Bloomberg: “It is encouraging that (Treasury officials) recognize the goals of the negotiations (were) to provide substantial and immediate benefits to insurers.”
On the opposite side of the argument, the National Association of Mutual Issuance Companies (NAMIC), is against the proposed measures, and “remains confident (Treasury) will reach the inescapable conclusion that the covered agreement as written is a perfect candidate for an international agreement that needs to be revisited to ensure we put the interests of the US insurance marketplace first,” according to an email to Bloomberg by NAMIC assistant vice president of federal policy Jonathan Bergner.
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