EU and U.S. regulators have ultimately defined the final follow-up steps regarding the Solvency II negotiations. The agreement relates to ensuring consumer protection and to contributing to a heightened regulatory certainty for insurers and reinsurers active in the EU and U.S. zone.
The Solvency II reconciliation paper comprises of three areas which are significant to supervisors. The paper includes agreements relating to reinsurance, group supervision and the exchange of insurance information.
The last paragraph of the agreement was added by the U.S. Congress on January 13th 2017. Essential actions for completion are to be taken by the European Council and Parliament.
The idea of middle ground on Solvency II was envisioned to take place late 2016 when in November a joint public statement was released, stating that EU and U.S. representatives are making progress in ‘identifying negotiation points of convergence and areas requiring further work’.
Following November, the December statement specified that the regulators made ‘significant progress’ towards establishing a final agreement.
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