EU, U.S. Reach Trans-Atlantic Agreement Over Insurance Rules

By Julia-Ambra Verlaine and Jacob M. Schesinger 

The U.S. and European Union have reached a trans-Atlantic agreement to ease business for insurance companies, officials said on Friday.

The agreement was reached after more than 20 years of discussions and almost a year of formal negotiations. Its aim is to remove regulatory uncertainty for American insurers that do business within Europe. Meanwhile, EU reinsurers stand to benefit from changes to collateral requirements that could save them hundreds of millions of dollars.

"This is a major deal that is set to benefit insurers, reinsurers and policyholders on both sides of the Atlantic," said the EU's financial services chief, Valdis Dombrovskis.

"We are pleased the U.S. and EU were able to conclude this Agreement, which resolves uncertainty for U.S. insurers and reinsurers," said U.S. Trade Representative Michael Froman said in a separate statement. "This agreement will provide opportunities for U.S. insurers and reinsurers doing business in the EU while continuing to ensure a high standard of protection for U.S. and EU consumers."

USTR and the Treasury Department, which also joined in the negotiations, sent letters to Congress notifying members of the deal.

(END) Dow Jones Newswires

January 13, 2017 09:32 ET (14:32 GMT)

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