Common Contracts

The Future of the US–EU Covered Agreement: How to Drag an Absurdly Federalist Regulatory System into the Global Reinsurance Marketplace

Covered Agreement • February 4th, 2019

• Contract Type
  Covered Agreement
• Filed
  February 4th, 2019

The US–EU Covered Agreement (“Covered Agreement”) is a bilateral agreement between the United States (“US”) and the European Union (“EU”) that puts in place regulations that will govern the insurance and reinsurance industries in those regions.1 This agreement represents an early step towards what will likely become a more standardized and integrated approach to international regulation of insurance markets. This note will give the context and background necessary to understand the Covered Agreement, explain the main provisions of the Covered Agreement, analyze criticisms and next steps, and advocate for a specific implementation of the Covered Agreement.