Menu
The US-UK Covered Agreement

News / / The US-UK Covered Agreement

This was somewhat answered by the announcement of an equivalent agreement between the US and the UK (the US-UK Covered Agreement) The press announcement for the agreement stated that it was aimed at regulatory certainty, market continuity, and protection of policyholders going forward, as well as to maximize business opportunities and cut red tape for (re)insurers' cross-border operations The US-UK Covered Agreement mirrors the US-EU Agreement and covers three areas reinsurance collateral, group supervision, and the exchange of information regarding (re)insurers between UK and US regulators The US-EU Covered Agreement entered into force on 4 April 2018 The Agreement sets out the timeline of implementation over a five-year period from the date of signature of the Agreement The US-UK Covered Agreement follows the same timetable save that the US-UK Covered Agreement does not enter in force until the UK and US governments exchange written notifications to the effect that they have each completed domestic internal requirements This will likely not happen until Brexit, ie when the UK is no longer entitled to rely on the US-EU Covered Agreement Once the US-UK Covered Agreement is fully implemented, reinsurance collateral (which will on its own require the enactment of legislation) and local presence requirements for US and UK reinsurers operating in each other's jurisdictions will be removed Essentially, less favourable treatment cannot be doled out by one party on a reinsurer from a counterparty market, and reinsurers need not establish a local presence in a counterparty market in order to operate there As regards group supervision, insurance and reinsurance groups' domiciliary jurisdictions will be recognised so that US and UK (re)insurers should only be subject to global insurance group oversight in their respective home' jurisdictions (including US states of domicile for US groups) In particular this relates to group capital requirements For example, US (re)insurers will not need to comply with Solvency II reporting requirements (or indeed the English law equivalent post-Brexit) in order to write business in the UK Lastly, the agreement is intended to encourage the bilateral exchange of regulatory and supervisory information on (re)insurers that operate in the US and UK between insurance regulators in the two countriesThis is good news for UK (re)insurers as it will enable their UK entities to enjoy the same benefits as their EU counterparts and provides a certain element of continuity in a post-Brexit world

Related sectors:

Related services:

Related news & insights

Insights / Success with subrogation in the UAE

25-05-2021 / Insurance

Insurers often perceive subrogated recoveries as challenging and uncertain in this region and that can be true to some extent. 

Success with subrogation in the UAE

Insights / Insurance & Reinsurance guide 2021

25-01-2021 / Insurance

We are pleased to share with you Chambers and Partners 'Insurance & Reinsurance guide 2021', of which Simon Cooper is the contributing editor.

Insurance & Reinsurance guide 2021

Insights / Supreme Court checks out of Orient Express Hotel

19-01-2021 / Insurance

On 15 January 2020, the Supreme Court handed down its judgment in this test case that was initiated by the Financial Conduct Authority (“”FCA”) in order to determine a number of common coverage issues pertaining to the correct response of non-damage business interruption policies to the Covid-19 pandemic.

Supreme Court checks out of Orient Express Hotel

Insights / Decennial Liability in the UAE

05-10-2020 / Insurance

At its core, decennial liability is a form of strict liability imposed on architects, engineers and contractors in the case of total or partial collapse of a building or structure or defects found in the building or structure that threaten the structural integrity of the building.

Decennial Liability in the UAE

Insights / The Insurance and Reinsurance Law Review Eighth Edition

16-06-2020 / Insurance

We’re pleased to share with you the eighth edition of The Insurance and Reinsurance Law Review. Ince is a member of The Law Reviews (TLR) leading panel of contributors and the team this year led by Peter Rogan as the Editor, contributed to the following topics:

The Insurance and Reinsurance Law Review Eighth Edition

Insights / Chapter 15 - England and Wales

16-06-2020 / Insurance

The UK insurance and reinsurance industry is the largest in Europe and the fourth-largest in the world.

Chapter 15 - England and Wales

Quick links

The Legal 500 2021

“Very available and responsive to company developments in real time. Frank, clear advice – not just the ‘easy’ answer.”

The Legal 500 2022

“The solicitors who have handled our employment related issues are of the highest quality in terms of their specialist area of expertise, their professionalism and their approach to us as clients and as people. Special mention has to be made of Laura Livingstone. Laura became a key member of our team and felt more like a colleague than an external adviser – a colleague you could rely upon. Laura’s attention to detail, professionalism and responsiveness was second to none. Laura has come to know and understand us as individuals and this has enabled her to personalise her advice and even sometimes to preempt our future requirements. We have a very special and extremely valuable relationship with her and the firm.”

- The Legal 500

The Legal 500 2022

“Ince are an excellent “fit” with our specific needs. The firm has consistently provided a broad range of personnel-related advice and in our experience that advice has been consistently of the very highest professional standard: it has been timely, comprehensive, accurate and at a cost which is commensurate with the budget of an organisation of our size.”

- The Legal 500

The Legal 500 2022

“The firm has an unusually high degree of insight into the practices and policies required by the Gambling Commission as regards compliance with its own requirements and conditions – particularly Andrew Tait, derived from his previous in-house experience.”

- The Legal 500