EU-U.S. Dialogue Project

Last Updated 1/10/19

Issue: For well over a decade, the NAIC and state insurance regulators have regularly taken part in on-going U.S.-EU insurance regulatory dialogues on various topical issues of mutual regulatory concern. Together, U.S. and European Union (EU) regulators oversee approximately two-thirds of the global insurance market. Enhanced cross-border cooperation and regulatory modernization is important to ensure our regulatory communities are better equipped to face global challenges that arise. These recurring dialogues have led to more harmonized regulatory approaches where appropriate and fostered mutual trust and understanding amongst regulators of different jurisdictions. Moreover, the dialogues have established the basis on which to build new cooperation projects. A EU-U.S. Insurance Dialogue Project began in January 2012 with the objective of enhancing understanding and cooperation for the benefit of insurance consumers, business opportunity and effective supervision.

Overview: In January 2012, the NAIC, the Federal Insurance Office (FIO) of the U.S. Department of the Treasury, the European Insurance and Occupational Pensions Authority (EIOPA) and the European Commission (EC) agreed to participate in the EU-U.S. Insurance Dialogue Project ("Project"). The Project was established to deepen insight into the overall design, function and objectives of the key aspects of the insurance regulatory regimes in the U.S. and EU, and to identify important characteristics of both regimes. The Project is led by a steering committee that includes three top supervisory officials from the U.S. and three from the EU. The Steering Committee choses key topics they consider to be fundamentally important to a sound regulatory regime that protects policyholders and financial stability.

In September 2012, a comprehensive draft report on the commonalities and differences between the jurisdictions in key areas of supervision was produced for public comment. Two public hearings were held in October 2012 to offer participants a chance to comment on the Project's draft report. Based on the comments received, a revised final report was released in December 2012 entitled "EU-U.S. Dialogue Project Technical Committee Reports Comparing Certain Aspects of the Insurance Supervisory and Regulatory Regimes in the European Union and the United States". Based on the report, in 2014 the Steering Committee also agreed on a "Way Forward" plan through 2017 which outlined common objectives and initiatives for the parties to be pursued over the next five years and hosted annual public events.

Status: The Project’s work in 2018-2019 will focus on cybersecurity, the use of big data, and intragroup transactions. In March 2018 the Project published new initiatives outlining objectives, outcomes, and deliverables for these three areas through 2019. The Project hosted two public events in 2018 one in January and one in November. In advance of the November public event, the Project published papers in the areas of cybersecurity, cyber insurance, big data, and intra-group transactions.