U.S. Representative Ed Royce (R-Calif.) questioned witnesses on the merits of the United States reaching a covered agreement with the E.U. during a Housing and Insurance Subcommittee hearing entitled “The Impact of International Regulatory Standards on the Competitiveness of U.S. Insurers: Part II.”
“I am concerned that Congress may be exporting the state vs. federal ‘turf war’ into the international arena to the detriment of U.S. companies and consumers.The U.S. has much to gain by moving forward with a covered agreement on reinsurance collateral with the EU. Formal negotiations would give the U.S. leverage in discussions about equivalency under the European Solvency II regime. Simply put, without action, U.S. companies lose,” Rep. Royce first remarked.
“Mr. Torti, I have some questions for you as a reformed insurance commissioner. Much to my chagrin – and I assume yours as well, the NAIC hasn’t prioritized collateral reform. That’s what I wanted to talk to you about. In 2011, the NAIC’s certified reinsurer provisions are still not an accreditation standard. A long time has passed! And a third of states haven’t modernized their laws – including major states like Texas and Illinois. Moreover, states who have modernized their reinsurance laws have not …read more
Source:: U.S. Rep. Ed Royce