The £2.46 billion transatlantic insurance and reinsurance market has received a timely boost after a deal was struck on Friday between the European Union and the United States.
An accord has been agreed on to cut legal and capital barriers after more than one year of negotiations and comes on the back of last year’s deal on derivatives.
According to a
Reuters report, requirements for reinsurers to hold more capital against risks if they operate on the other side of the Atlantic will be lifted; while insurers will benefit from lower supervisory requirements which should cut costs.
A statement read that the deal “will ensure ongoing robust insurance consumer protection and provide enhanced regulatory certainty for insurers and reinsurers operating in both the US and the EU.”
It is expected that the deal will allow EU companies to increase market share in the US; while US companies will be able to sell policies more easily across European Union countries – although approval is still required from US Congress and the European Parliament.
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