Insurers Want Financial Services Included in TTIP - Global Trade Magazine
  November 12th, 2015 | Written by

Insurers Want Financial Services Included in TTIP

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Sharelines

  • Bilateral U.S.-EU insurance trade and investment exceeds $185 billion.
  • Strengthening U.S.-EU relationship could open markets for insurers and ensure a healthy global industry.
  • Proposals for financial regulatory cooperation in TTIP would not detract from the ability of regulators to act.

The American Insurance Association, Insurance Europe, and the American Council of Life Insurers announced their support for the full inclusion of insurance in the Transatlantic Trade and Investment Partnership (TTIP).

Collectively, these bodies represent the life and non-life insurance sectors in the United States and the European Union.

“Transatlantic trade and investment benefit those on both sides of the Atlantic by stimulating economic activity, job creation and competitiveness,” said a statement. “Bilateral insurance trade and investment already exceeds $185 billion. Strengthening this cooperative relationship could open potential markets for U.S. and EU insurers and ensure a healthy global insurance industry.

Neither financial services trade issues nor regulatory cooperation have been addressed in recent negotiating rounds, according to the statement.  “We were pleased to learn that both U.S. Trade Representative Michael Froman and EU Trade Commissioner Cecilia Malmström recognized a need to intensify negotiations, and we expect that the new intensity will apply to financial services,” the statement 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.”

None of the proposals for financial services regulatory cooperation in the TTIP would detract from the ability of regulators to act when necessary, according to the industry groups. “We believe that the TTIP offers an opportunity to create enduring structures for stronger and consistent regulatory cooperation and, where appropriate, mutual recognition,” they said. “Such regulatory cooperation would support multilateral efforts in the G20 and Financial Stability Board, contributing to a stable global financial system.”