EU, U.S. Insurance Organizations Call for ‘Full Inclusion’ in the TTIP

The American Insurance Association (AIA), Insurance Europe, and the American Council of Life Insurers (ACLI) have jointly issued a bulletin that reiterates their support “for the full inclusion of insurance in the Transatlantic Trade and Investment Partnership (TTIP).”

The three organizations represent both life and non-life insurance sectors in the United States and the European Union. Their position states that the “transatlantic trade and investment benefit those on both sides of the Atlantic by stimulating economic activity, job creation and competitiveness. Bilateral insurance trade and investment already exceeds $185 billion/€137 billion a year. Strengthening this cooperative relationship could open potential markets for U.S. and EU insurers and ensure a healthy global insurance industry.”

The plea to include insurance as part of the financial services sector of the TPIP coincides with the 11th round of negotiations, which are scheduled to be held October 19-23 in Miami. “We hope that both sides will affirm that a successful TTIP must include insurance and other financial services,” the joint bulletin said.

“The TTIP creates the opportunity to increase insurance trade and investment between the U.S. and EU, set a high standard for future trade negotiations with third parties, and facilitate dialogue between regulators on both sides of the Atlantic,” it continued.

The insurance organizations expressed their concerns that “neither financial services trade issues nor regulatory cooperation have been addressed in recent negotiating rounds.” They added, however: “We were pleased to learn that both U.S. Trade Representative Ambassador Michael Froman and EU Trade Commissioner Cecilia Malmström in September recognized a need to intensify negotiations, and we expect that the new intensity will apply to financial services.”

They also expressed their continued support for “the existing regulatory dialogues between the U.S. and the EU;” adding that they believe “the TTIP offers an opportunity to create enduring structures for stronger and consistent regulatory cooperation and, where appropriate, mutual recognition.”

“Furthermore, none of the proposals for financial services regulatory cooperation in the TTIP would in any way detract from the ability of regulators to act when necessary. Such regulatory cooperation would support multilateral efforts in the G-20 and Financial Stability Board, contributing to a stable global financial system.

Source: American Insurance Association, Insurance Europe, American Council of Life Insurers

Topics USA Legislation Europe