Congressman Attacks Insurance Agreement
U.S. House Financial Services Committee Vice Chairman Patrick McHenry (R-Fla.) has called on the Federal Reserve to put a freeze on all international financial regulatory negotiations until President Donald Trump has appointed officials who will “prioritize America’s best interests.”
The recently negotiated covered agreement could possibly be endangered should McHenry’s request become reality. Negotiators for the U.S. and European Union completed the agreement days before President Trump took office. The negotiators say U.S. and EU insurers operating in the other market will only be subject to oversight by the regulators in their home jurisdiction. In the United States, the agreement preserves the primacy of state regulation of U.S. insurance groups.
The National Association of Insurance Commissioners (NAIC)expressed disdain at the passing of the covered agreement last month. “After more than a year of secret meetings it's disappointing that in the waning days of the [Obama] administration we are finally seeing the details of what purports to be a covered agreement between the U.S. and EU,” said NAIC President and Wisconsin Insurance Commissioner Ted Nickel.