“Twisting in the Wind: Covered Agreement Dangling by Uncertainty and Politics,” AIRROC Matters
In an article for AIRROC Matters, Frederick J. Pomerantz examines the uncertain status of the “Covered Agreement,” a novel multilateral insurance agreement between the United States and the European Union. Early advocates hoped that the agreement would result in an “equivalency recognition” between U.S. and EU insurance regulatory systems. According to state insurance regulators, the agreement falls short of this, but does include provisions that would bring these insurance markets closer by eliminating obstacles for U.S. reinsurers doing business in the EU and by EU reinsurers assuming business from U.S. cedents. But the U.S. has yet to sign. Fred expands upon possible reasons for the uncertain status of the Agreement and examines conflicting interpretations of its potential impact and significance in the U.S., the EU, and the post-Brexit United Kingdom.