The US Treasury and US Trade Representative’s office announced yesterday their intention to sign a bilateral insurance agreement with Britain, which would promise regulatory certainty and continuity for the insurance market once Britain leaves the European Union. This is scheduled to occur at the end of March next year, although various increasingly eye-popping political developments in Britain have cast a measure of doubt on this.
The US-UK Covered Agreement would, according to the US Treasury and USTR, be similar in principle to an agreement that the US signed with the EU in 2017. The announcement marked the beginning of a 90-day notification period that US Congress requires before the agreement can be signed and implemented.
“I am very pleased that we’ve been able to preserve the benefits of the EU-US covered agreement for UK firms in the US, the largest insurance market in the world, once the UK has left the EU,” commented Antony Phillipson, Britain’s Trade Commissioner for North America.
It is hoped that the agreement will benefit the competitiveness of American insurers and reinsurers.