The agreement is viewed positively by most parts of the Atlantic, as it calls for the eventual end of security and local presence requirements for EU and US reinsurers, which have long been a problem for reinsurers. There is some evidence that EU insurers may be able to recover US$40 billion supplied to the US. The Federal Insurance Office Act of 2010 (FIO Act), which was passed as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), created the Federal Insurance Bureau (FIO) within the Ministry of U.S. Finance and authorized the U.S. Treasury and USTR to negotiate « covered agreements » with one or more foreign governments or authorities regarding the recognition of prudential insurance or reinsurance measures that reach a level of protection which reaches a level of protection. consumers of insurance or reinsurance, which correspond essentially to the level of protection achieved by the state regulation on insurance or reinsurance. The agreement is an improvement over the previous requirement, which meant that non-U.S. insurers were required to fully guarantee their reinsurance obligations to U.S. divested insurers. U.S. insurers and reinsurers have also described difficulties in implementing Solvency II by some EU member states, regardless of the provisional 10-year U.S.
equivalency. When NAIC held its first meeting since the covered agreement on February 20, 2018, delegates had a lot to say about the covered agreement, but the general consensus was that another covered agreement was not the answer. Delegates were more interested in extending the covered agreement to non-EU countries (due to a currently non-existent accession process), namely NAIC, which extends the lifting of safeguards to all qualified NAIC countries (currently including Bermuda, France, Germany, Ireland, Japan, Switzerland and the United Kingdom). On 12 December 2018, the Ministry of Finance and the USTR announced their intention to sign a covered agreement with the UK, which would extend the terms, which are almost identical to the EU-covered agreement, to insurers and reinsurers operating in the UK after Brexit. The UK Covered Agreement was signed on 19 December 2018. On January 13, 2017, the U.S. Treasury Secretary and the then U.S. Trade Representative (USTR) informed Congress that they had negotiated a covered agreement with the European Union (EU). After a period of uncertainty during which it was not certain that the new Trump administration would accept the covered agreement negotiated by the outgoing Obama administration, the U.S.
Treasury (Treasury) and USTR announced on July 14, 2017 their intention to sign the covered agreement that took place on September 22, 2017. Following the signing of the covered agreement, the U.S. Treasury and USTR also issued a joint political statement on its implementation, specifying the U.S. position on the interpretation of certain provisions of the agreement.