The Reinsurance Association of America (RAA) has called for a framework of regulatory co-operation between the US and the European Union (EU).

President Frank Nutter has praised the National Association of Insurance Commissioners (NAIC), the Federal Insurance Office (FIO) and the EU for acknowledging evolving regulatory environments in the global insurance industry.

But he warned that while EU and US efforts to modernise their regulatory environments for cross-border business continue to move forward, “the reality is implementation of the EU’s Solvency II and the adoption of NAIC’s Solvency Modernisation Initiative is unlikely to occur for years”. 

Mr Nutter wants the EU and US to consider interim measures under existing authority to create a framework for global reinsurance companies. “The RAA is not wedded to a particular approach,” he said.

“The potential options include the Federal Insurance Office under Dodd-Frank to enter into agreements with trading partners and the EU, under the 2005 Reinsurance Directive, to authorise cross-border reinsurance by proposing treaties with third countries.”

Mr Nutter says the RAA wants to work with other authorities to enable cross-border capital and capacity to support domestic insurance markets.