On 27 September 2012, the Steering Committee of the EU-US Dialogue Project released for public comment a draft report comprising the Technical Committee Reports “Comparing Certain Aspects of the Insurance Supervisory and Regulatory Regimes in the European Union and the United States.” This Dialogue Project began in early 2012 and involves insurance regulators from the European Commission, European Insurance and Occupational Pensions Authority (“EIOPA”), the National Association of Insurance Commissioners in the US (“NAIC”), and the Federal Insurance Office of the US Department of the Treasury (“FIO”). The stated goal of the project is “to contribute to an increased mutual understanding and enhanced cooperation between the EU and the US to promote business opportunity, consumer protection and effective supervision.” The three US members of the six person Steering Committee are Kevin McCarty, Commissioner of Insurance, Florida and current President of the NAIC, Michael McRaith, Director, FIO, and Terri Vaughan, CEO, NAIC.
The report addresses seven areas based upon the work of a separate Technical Committee that was assembled for each topic as part of the exchange of information and discussion under the Dialogue Project. The EU-US jointly drafted technical reports identify key commonalities and differences of the EU and US insurance regulatory regimes in relation to the following topics:
- professional secrecy and confidentiality
- group supervision;
- solvency and capital requirements;
- reinsurance and collateral requirements;
- supervisory reporting, data collection and analysis and disclosure;
- supervisory peer reviews; and
- independent third party reviews and supervisory on-site inspections.
The draft report can be found here. Public hearings will be held on 12 October 2012 in Washington, DC and on 16 October 2012 in Brussels and written comments are requested by 28 October 2012. Based upon the public comments, the project will move to a second phase that will involve discussions among the EU-US regulators about the commonalities and differences between the EU and US regimes and “will lead to policy decision by their respective organizations regarding whether and how to achieve further harmonization in regulation and supervision.” The project is intended to conclude by 31 December 2012.