Thursday, February 16, 2017

ACLI Supports U.S.-EU Covered Agreement

Washington D.C. (February 16, 2017) – In a statement to the U.S. House Financial Services Subcommittee on Housing and Insurance, American Council of Life Insurers (ACLI) President and CEO Dirk Kempthorne supported the covered agreement on insurance and reinsurance prudential measures between the United States and the European Union. The statement was submitted today for a hearing entitled, “Assessing the U.S.-EU Covered Agreement.”

ACLI believes that the benefits of the covered agreement to the competitiveness of the U.S. insurance industry and to state regulation are immediate and substantial. We urge members of Congress to support it,” Governor Kempthorne said in his statement.

The covered agreement will make U.S.-based insurers and reinsurers more competitive. It respects our state-based system of insurance regulation. It facilitates and encourages coordination and cooperation between U.S. insurance regulators and EU insurance supervisors, which reduces regulatory burdens for the insurance industry on both sides of the Atlantic. It maintains protections for U.S. insurers that buy reinsurance from EU-based reinsurers. It preserves the sovereignty of our U.S. regulators to impose corrective measures on an EU-based reinsurer.

“The agreement also preserves U.S. regulators’ authority to impose corrective measures on any EU-based insurer if its financial condition threatens policyholder protection or financial stability.”

Download Governor Kempthorne’s full statement. (PDF)

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The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with approximately 290 member companies operating in the United States and abroad. ACLI advocates in state, federal, and international forums for public policy that supports the industry marketplace and the 75 million American families that rely on life insurers’ products for financial and retirement security. ACLI members offer life insurance, annuities, retirement plans, long-term care and disability income insurance, and reinsurance, representing 94 percent of industry assets, 93 percent of life insurance premiums, and 97 percent of annuity considerations in the United States. Learn more at www.acli.com.

Date Posted: February 16, 2017
Document ID: NR17-009
Contact: Whit Cornman, 202-624-2442