AIA Endorses (TiSA) Agreement Negotiations; Supports Energy Coverage Inclusion

June 20, 2014

The American Insurance Association (AIA) has endorsed the negotiations underway in Geneva for the adoption of the Trade in Services Agreement (TiSA) initiative, as the PCI recently did.

In a letter to Ambassador Michael Froman, the U.S. Trade representative, AIA President and CEO Leigh Ann Pusey described U.S. insurers as “the most competitive in the world,” adding that “initiatives like the TiSA that reduce barriers for us abroad are crucial to growing our business and creating jobs in the U.S.

“We appreciate greatly all of the work that you and your negotiators have put into the TiSA, as well as your staff’s willingness to consult with us as an association and through a member of our staff who serves on the Industry Trade Advisory Committee on Services and Finance Industries (ITAC 10),” the letter continued.

Pusey also said the AIA supports proposals, brought forward by Norway, to expand “the types of insurance that are subject to Mode 1 (cross-border) commitments in the TiSA to include insurance related to energy exploration, development, production activities, and properties in the offshore energy sector.”

The letter added that the AIA’s support for expanded Mode 1 commitments certainly includes insurance for energy exploration, development, production activities, and properties in the offshore energy sector, and we urge U.S. negotiators to include such commitments in the TiSA.

“The types of insurance services that were included in the GATS Mode 1 commitments –  reinsurance and marine, aviation and transportation (MAT) insurance – are those that frequently support global business operations. We believe that energy insurance reflects the same high level corporations that generally have experience in international insurance markets, and merits inclusion in the commitments on that same principle.”

Pusey’s letter added that, while the AIA supports sound policyholder protection, “we do not believe that the large corporations that purchase such types of insurance require the same level of protection that individual, private policyholders who purchase personal lines of insurance such as homeowners insurance or auto insurance require.”

Source: American Insurance Association (AIA)

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