UK and US Bilateral Agreement (the UK-US Covered Agreement)

On 20 December, HM Treasury published a Joint Statement with the US Treasury and Office of the US Trade Representative, announcing that the UK has signed a Bilateral Agreement with the United States on Prudential Measures Regarding Insurance and Reinsurance (the UK-US Covered Agreement) to ensure market continuity and regulatory certainty as the United Kingdom prepares for Brexit.

The UK-US Covered agreement is based on the US recognition that the package of measures in the Solvency II Directive is equivalent to US prudential standards for insurance. The Solvency II directive will be carried over to UK law as part of the European Union (Withdrawal) Act 2018. The new UK/US bilateral agreement is intended to take effect when the equivalent EU-US agreement ceases to apply to and in the UK when the UK leaves the EU. The application of the new bilateral agreement extends to Gibraltar..