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EU, U.S. reached deal to boost transatlantic insurance

Staff Writer |
The European Union and the United States agreed on Friday to reduce legal and capital barriers to boost the $3 billion transatlantic insurance and reinsurance market.

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The accord has been under negotiation for more than a year and follows an agreement last year on derivatives.

U.S. and EU representatives said in a joint statement they had reached a deal "that will ensure ongoing robust insurance consumer protection and provide enhanced regulatory certainty for insurers and reinsurers operating in both the U.S. and the EU."

Under the deal, EU and U.S. authorities will lift requirements for reinsurers to hold more capital against risks if they operate from the other side of the Atlantic, eliminating one key hurdle for cross-border expansion.

Insurers will also benefit from lower supervisory requirements, a move expected to reduce costs.

The deal paves the way for EU companies to increase their market share in the United States and for US companies to sell their policies more easily in the 28 European Union countries.

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