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NAIC Responds to Covered Agreement

Statement from NAIC President and Wisconsin Insurance Commissioner Ted Nickel:

"We are pleased to see Treasury and USTR clarify their interpretation of the covered agreement, as we have asked, in key areas like capital, group supervision, reinsurance and the Joint Committee. We've worked closely with Treasury and USTR on these clarifications and appreciate their affirmation of the primacy of state regulation. In the months ahead, NAIC members will assess the impact of the covered agreement on state regulation consistent with our open and transparent process, and consider any changes to insurance regulation that may be necessary."

 

Statement from NAIC CEO Mike Consedine:

"States are committed to resolving any disparate treatment of U.S. insurance firms operating in the EU, while ensuring we retain strong solvency protections for U.S. firms conducting business with EU reinsurers.  The recent natural catastrophes illustrate the importance of ensuring policyholders and primary insurers are paid what is owed promptly when disaster strikes. We appreciate the Treasury and USTR working constructively with us to resolve our concerns with the covered agreement, but would caution against using this mechanism in the future."

About the NAIC

As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. For more information, visit www.naic.org.

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