Waters Statement on the Signing of U.S. – E.U. Covered Agreement on Insurance Matters on Insurance Matters
Following the announcement that representatives from the United States and European Union signed a covered agreement, a mechanism established by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), on international insurance and reinsurance matters, Congresswoman Maxine Waters (D-CA), Ranking Member of the Committee on Financial Services, issued the following statement:
“I commend former Federal Insurance Office (FIO) Director Michael McRaith and his team for their hard work towards negotiating and signing a covered agreement with the European Union. After months of review, the agreement will ensure that U.S. insurers and reinsurers have clear and consistent rules of the road. Not only does this provide regulatory certainty for the insurance industry, the agreement will benefit consumers and the market as a whole. The signing is a great example of the importance of Dodd-Frank, which created FIO – the first federal office dedicated to coordinating federal and international insurance matters.”
AIG’s collapse during the financial crisis highlighted the systemic nature of large, interconnected insurance companies in the global economy. After the financial crisis, lawmakers enacted Title V of Dodd-Frank, which established FIO, an office dedicated to coordinating and building consensus in the development of international insurance standards. Title V also grants the Secretary of the U.S. Department of the Treasury, through FIO, and the Office of the U.S. Trade Representative the authority to enter into covered agreements with foreign governments related to prudential measures with respect to the business of insurance or reinsurance.