Covered agreement would improve reinsurance between US and Europe: RIMS

The Risk & Insurance Management Society (RIMS) has written a letter to the US Department of the Treasury expressing its support for the proposed US-EU covered agreement on reinsurance.

The letter suggested the covered agreement could benefit RIMS members by eliminating collateral requirement that would result in additional capital and the increase of reinsurance capacity.

Furthermore, RIMS said the agreement benefits members by requiring the appointment of insurance commissioners for service, and streamlines the dispute process by clarifying jurisdiction and payment of final judgements.

“For risk professionals to support their organisations’ expansion into global markets, it is important that RIMS advocates for regulation that facilitates opportunities for our members’ to effectively achieve their objectives,” said RIMS president Nowell Seaman, who submitted the letter.

“RIMS is encouraged by the US-EU Covered Agreement on reinsurance and looks forward to working with the Department of the Treasury to help bring this agreement to fruition.