Negotiators working for better US market access for EU reinsurers have abandoned the ongoing TTIP negotiations. They recognized that the reform of the current state is unlikely to take place via TTIP. The US require EU reinsurers to post as much as 100% collateral against their US liabilities. On the other hand EU states do not have such strict provisions – only France and Portugal require collaterals. Instead of being a provision of the broad TTIP, the European Commission is hoping the reinsurance question to be part of a separate agreement to be concluded after TTIP. As reinsurance collaterals are more state than federal competence in the US, the question is more problematic.
The reinsurance case follows the refusal of the American side of the negotiations of financial services to be part of the broad trade and investment deal. These were included in the EU-Canadian deal agreed in the past weeks. However, a substantial reform in the area was not made. The TTIP was hoped to be more ambitious in this regard. It will likely not deliver though. By the end of 2014, when TTIP should be concluded in principle, only first steps toward an agreement on reinsurance are expected to be taken.
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19th June 2018